What is the difference between Capex and Opex? - ProProfs Discuss
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What is the difference between Capex and Opex?

Asked by G. GRAY, Last updated: Sep 16, 2020

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Carice Snow

Carice Snow

I am a well trend Motivational speaker at California.

Carice Snow
Carice Snow, Motivator, MA, California

Answered Mar 29, 2020

Capex is a capital expenditure, and Opex is an operating expenditure. These terms are commonly used in the business world. Capex and Opex determine the worth of a business enterprise and how it will change over a specific period. Capex refers to any factors involved in a business organization to generate revenue.

Capital expenses are sustained to increase the capacity of the company to foster and procure wealth. Opex refers to the costs acquired by the organization in the process of maintenance and running the properties which generate revenue in the organization. All the expenses procured in the daily running of the business, such as administration costs, research, and design costs, are recorded.

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