Because I do not have business study or background, so I think this is a must for me to study about those items.. TT_TT"
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Capex
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Opex
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| Definition | Capital expenditures are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing asset with a useful life that extends beyond the tax year.
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OpEx (Operational expenditure) refers to expenses incurred in the course of ordinary business, such as sales, general and administrative expenses (and excluding cost of goods sold - or COGS, taxes, depreciation and interest).
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Also known as
| Capital Expenditure, Capital Expense
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Operating Expense, Operating Expenditure, Revenue Expenditure
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Accounting treatment
| Cannot be fully deducted in the period when they were incurred. Tangible assets are depreciated and intangible assets are amortized over time.
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Operating expenses are fully deducted in the accounting period during which they were incurred.
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In throughput accounting
| Money spent on inventory falls under capex.
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The money spent turning inventory into throughput is opex.
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In real estate
| Costs incurred for buying the income producing property.
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Costs associated with the operation and maintenance of an income producing property.
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Examples
| Buying machinery and other equipment, acquiring intellectual property assets like patents.
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Wages, maintenance and repair of machinery, utilities, rent, SG&A expenses
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*courtesy of http://www.diffen.com/difference/Capex_vs_Opex
