OPEX (Operational Expenditure)

Operational Expenditure (OPEX) is defined in the context of business or procurement as the money spent on the day-to-day running and functioning of a company. This includes activities such as staff salaries, technology investments, operational costs related to goods/services, maintenance and rental costs, etc. OPEX is typically managed differently from Capital Expenditure (CAPEX), which are funds that are used for the longer-term investment in assets such as property or equipment. By understanding and managing both OPEX and CAPEX effectively, businesses can ensure that resources are optimally allocated for the greatest benefit to the organization.