OpEx Meaning & Definition

An acronym for Operating Expenses, OpEx refers to the ongoing costs associated with the daily operations of business products, services and/or systems.

Operational expenditures stand in contrast to capital expenditures, or CapEx, which are the costs associated with acquiring, developing or upgrading physical assets such as hardware systems or intangible assets like patents and other intellectual property.

OpEx from an Accounting Perspective

From an accounting perspective, OpEx or operational expenditures refer to business costs needed to ensure the daily operations of the business, such as wages and other administrative costs, utilities and maintenance.

OpEx costs are fully deducted on income statements in a given accounting period, whereas CapEx costs need to be capitalized (depreciated or amortized) over the expected life of the asset.

Forrest Stroud
Forrest Stroud
Forrest is an experienced, entrepreneurial and well-rounded professional with 15+ years covering technology, business software, website design, programming and more.

Top Articles

The Complete List of 1500+ Common Text Abbreviations & Acronyms

Text Abbreviations reviewed by Web Webster   From A3 to ZZZ we list 1,559 SMS, online chat, and text abbreviations to help you translate and understand...

How to Create a Website Shortcut on Your Desktop

Website Shortcut on Your Desktop reviewed by Web Webster   This Webopedia guide will show you how to create a website shortcut on your desktop using...

Windows Operating System History & Versions

The Windows operating system (Windows OS) refers to a family of operating systems developed by Microsoft Corporation. We look at the history of Windows...

First to Fifth Generations of Computers

Reviewed by Web Webster   Learn about each of the 5 generations of computers and major technology developments that have led to the computing devices that...

Hackerspace Definition & Meaning

What is a hackerspace? A hackerspace, also known as a hacklab, incubator, or hackspace,...

Random Access Memory (RAM)...

Random Access Memory (RAM) reviewed by Web Webster   Random Access Memory (RAM) is a...

OEM – original equipment...

OEM - Original Equipment Manufacturer reviewed by Web Webster OEM (pronounced as separate letters)...