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What is the difference between CAPEX and OPEX?

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Question added by Amr Nazmy Ahmed , section head
Date Posted: 2019/02/04
Ashraf E. Mahmoud (PhD)
by Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation,

In a very brief and prices wording, most of textbooks are defined CAPEX and OPEX as:

CAPEX: Are the Capital Expenditures 

Capital expenditures are the amounts that companies use to purchase major physical goods or services that will be used for more than one year. For example, a company might have capital expenditures to increase or improve its fixed assets.

Whereas,

OPEX: Are the operating expenses

Operating expenses are the costs for a company to run its business operations on a daily basis. Examples including rent and utilities.

 

Amin Khan
by Amin Khan , Chief Accountant , SRG Group - Global Travel Solutions

CAPEX, Capital expenditures are for purchaseing fixed assets, also for heavy maintenance cost can lead to extend the worth of asset. Capex cost expense out in  monthly depriciation schecules.

While OPEX, Operational expenses are daily expeses to run the business.

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