What is OPEX in accounting?

Question

What does OPEX mean in business accounting? I’d like to understand which operating expenses are normally included and how OPEX differs from other business costs.

David · Answer

Definition of OPEX is Operating Expense, which refers to costs incurred by an organization in its regular operations. Some of these costs include rent, salary payments, electricity bills, marketing, and office expenses. OPEX does not include production costs or large capital investments.

Kevin · Answer

OPEX stands for Operating Expense. The definition of OPEX implies the cost associated with the business activities of an entity. These costs can be such as rent, payment of salaries, utility costs, marketing, and office expenses. It does not cover production costs or big capital expenditure.

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