operational expenditure (OpEx)

Operational expenditure (OpEx) refers to the ongoing costs a business incurs to keep its daily operations running. This includes expenses like salaries, rent, utilities, maintenance, supplies, and any other costs necessary for business functions. Unlike investments in long-term assets (capital expenditures), OpEx covers short-term expenses that are consumed within a normal operating cycle. Managing OpEx effectively helps a business maintain profitability, control cash flow, and respond to changing market conditions. In essence, OpEx represents the regular, recurring costs essential for delivering products or services and maintaining business continuity.