This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
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.
The terms Overhead, Operating Expense, Indirect Costs, and Fixed Costs are very similar. Check how each term is used in your company.
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.