Operational Expenditures

Operational expenditures (OpEx) are the ongoing costs required to run a business daily. These include expenses like salaries, rent, utilities, supplies, and maintenance. OpEx are different from capital expenses, which are investments in assets like equipment or property. Managing OpEx is important because these costs directly impact profitability, and controlling them can improve financial stability. Essentially, OpEx are the regular costs necessary to keep the business functioning smoothly from day to day.