The Income|Outcome^® Contextuary

Opex or Operating Expense is the after-COS expenses related to normal operation of the business including R&D, advertising, salaries, and rent. Depreciation may, or may not, be included in OpEx.

Operating Expenses do not include Finance Charges, Taxes, and exceptional (one-time) charges.

Note: OpEx is an Operating Expense on the Income Statement. CapEx is a Capital Expenditure on the Balance Sheet.

The terms Overhead, Operating Expense, Indirect Costs, and Fixed Costs are very similar. Check how each term is used in your company.

 

OpEx (Operating Expense) is the after-COS expenses related to normal operation of the business including R&D, advertising, salaries, and rent. Depreciation may, or may not, be included in OpEx.

OpEx does not include Finance Charges, Taxes, and exceptional (one-time) charges.

Note: OpEx is an Operating Expense on the Income Statement. CapEx is a Capital Expenditure on the Balance Sheet.

“What do you mean by that?”

The terms Overhead, Operating Expense, Indirect Costs, and Fixed Costs are very similar. Check how each term is used in your company.