Opex vs. Capex

Definition

Operating expenses versus capital expenses—the difference between renting and owning, or in corporate speak, between 'this quarter's problem' and 'future quarters' problem.' The eternal accounting debate.

Example Usage

Should we classify this as opex or capex? The answer determines whether Finance loves or hates us.

Origin

Accounting terminology dating back to early corporate finance

Fun Fact

Entire business models have been built around converting capex to opex, which is how we got cloud computing and subscription everything.

Source: Accounting and finance terminology

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