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Friday, December 9, 2011

Expenditure - CAPEX / OPEX

CAPEX ( Capital Expenditure ) ;
Capital exp is when you buy something that is an asset - like a PC or a building (or sometimes stock-in-hand) - that you then use. Assets tend to be 'capitalised' over a number of years ( for tax purposes ) as they reduce in value.

OPEX ( Operational Expenditure )
Op exp is what you spend to run the day to day business - salaries, heat/light, rent, etc..

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