Operational Expenses

Operational expenses, often referred to as OPEX, are the costs a company incurs during its normal business activities. These expenses include items such as rent, utilities, salaries, and office supplies necessary for day-to-day operations. Unlike capital expenses, which are investments in long-term assets like buildings or equipment, operational expenses are usually recurring and directly tied to running a business. Managing OPEX effectively is crucial for maintaining profitability and ensuring a company can continue to function smoothly while delivering its products or services.