Complete details below mentioned how Capex is Different then Opex with Example
| Feature | Capex (Capital Expenditures) | Opex (Operational Expenditures) |
|---|---|---|
| Definition | Expenses incurred to acquire long-term assets that provide benefits over multiple accounting periods | Expenses incurred to maintain day-to-day operations and generate revenue |
| Timing | Long-term investment | Short-term expense |
| Impact on Assets | Increases the value of fixed assets | Does not affect the value of fixed assets |
| Expense Recognition | Capitalized on the balance sheet | Expensed in the accounting period in which it is incurred |
| Impact on Profitability | May not have an immediate impact on profitability | Directly affects the profit and loss statement |
| Examples | Purchase of equipment, construction of facilities, acquisition of software, investments in R&D | Salaries and wages, rent and utilities, inventory costs, marketing and advertising expenses, maintenance and repairs |
Hope you have understand Difference Between Capex and Opex
