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Operating expense information


An operating expense[a] is an ongoing cost for running a product, business, or system.[1] Its counterpart, a capital expenditure (capex), is the cost of developing or providing non-consumable parts for the product or system. For example, the purchase of a photocopier involves capex, and the annual paper, toner, power and maintenance costs represents opex.[2] For larger systems like businesses, opex may also include the cost of workers and facility expenses such as rent and utilities.


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  1. ^ David Maguire, The business benefits of GIS : an ROI approach, 1st ed. (Redlands Calif.: ESRI Press, 2008), http://roi.esri.com/. ISBN 978-1-58948-200-5
  2. ^ Aswath Damodaran, Applied Corporate Finance: A User’s Manual (John Wiley and Sons, 1999), http://pages.stern.nyu.edu/~adamodar/New_Home_Page/AppldCF/derivn/ch5deriv.html. ISBN 978-0-471-33042-4

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Operating expense

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An operating expense is an ongoing cost for running a product, business, or system. Its counterpart, a capital expenditure (capex), is the cost of developing...

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Expense

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categories: Operating: Operational expense – salary for employees Investing: Capital expenditure – buying equipment Expenditures (financial) Financing expense –...

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Earnings before interest and taxes

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(non-operating profit) + (non-operating expenses) where EBITDA = earnings interest, taxes, depreciation, and amortization OPEX = operating expense A professional...

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Capital expenditure

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The counterpart of capital expenditure is operating expense or operational cost (opex). Operating expense (operational expenditure, opex) Total cost...

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Expense ratio

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cost cutting and revenue maximization opportunities exist. Operating expense Total expense ratio United States of America Securities and Exchange Commission...

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Interest expense

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expense can represent the cost of borrowing money from banks, bond investors, and other sources. Interest expense is different from operating expense...

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Net income

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– taxes – interest Net profit = net sales – cost of goods sold – operating expense – taxes – interest Business portal Cost of goods sold – Carrying value...

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Revenue

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– taxes – interest Net profit = net sales – cost of goods sold – operating expense – taxes – interest EBIT = net profit + taxes + interest EBITDA = net...

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Working capital

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"convert debtors to cash" through "factoring". Cash conversion cycle Operating expense Overtrading Quick ratio analysis Sustainable growth rate Trade finance...

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Cash flow

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cost of good sold − operating expense − depreciation)* (1−tax rate)+depreciation OCF = (Revenue − cost of good sold − operating expense)* (1−tax rate)+ depreciation*...

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Throughput accounting

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critical monetary variables (throughput, investment (AKA inventory), and operating expense — defined below). When cost accounting was developed in the 1890s...

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Accrual accounting in the public sector

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purchased, but the cost is not included in the year's budget as an operating expense.: 19  Instead, payment for capital used (i.e., the estimated depreciation...

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Procurement

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of procurement performance or procurement efficiency: procurement operating expense as a percentage of managed spend. Joint procurement takes place when...

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List of ships of the line of the United States Navy

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list of ships of the line of the United States Navy. Because of the operating expense, a number of these were never launched. These ships were maintained...

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Theory of constraints

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make sound financial decisions based on throughput, inventory, and operating expense is a critical requirement. TOC is based on the premise that the rate...

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Total cost of ownership

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Downtime costs. Cost to company (CTC) Capital expenditure (CAPEX) Operating expense (OPEX) Activity-based costing Life cycle cost analysis Total benefits...

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Cost of goods sold

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– taxes – interest Net profit = net sales – cost of goods sold – operating expense – taxes – interest Accounting standards Average cost method Cost of...

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The Farming Game

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life farmers, are operating expenses. In The Farming Game, whenever a player harvests a crop, he draws a card entitled Operating Expense, examples of which...

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Glossary of construction cost estimating

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overhead or overhead expense refers to an ongoing expense of operating a business; it is also known as an "operating expense." See also General & Administrative...

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OPEX

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The acronym OPEX may refer to: Operating expense Operational excellence OPEX (Stock Exchange) OPEX (Corporation) OPtions EXpiration This disambiguation...

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World Series

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its annual operating expense from World Series revenue. Most importantly, the now-official and compulsory World Series matches were operated strictly by...

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Airbreathing jet engine

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airline to another, averaged 26.5% of total operating costs, making it the single largest operating expense for most airlines. Jet engines are usually...

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Depreciation

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expense does not require a current outlay of cash. However, since depreciation is an expense to the P&L account, provided the enterprise is operating...

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Corruption

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special tax may, however, be abated along with the bribe amount as an operating expense. Denmark: bribe payments are deductible when a clear operational context...

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Commercial property

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investment is a real estate fund. Cash inflows include the following: Rent Operating expense recoveries Fees: Parking, vending, services, etc. Proceeds from sale...

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Airline

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policy to control their fuel costs. Operating costs for US major airlines are primarily aircraft operating expense including jet fuel, aircraft maintenance...

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Data center

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higher power density facilities, electricity costs are a dominant operating expense and account for over 10% of the total cost of ownership (TCO) of a...

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