Definition
Operating Expenditure (OPEX) comprises recurring expenses associated with maintaining and running an organisation, process or infrastructure.
Human Explanation
OPEX covers costs incurred during normal operations.
Why it Matters
Low CAPEX does not necessarily mean that an investment is less expensive when its later operating costs are high.
Conceptual Boundary
OPEX does not include capital spending that creates or increases the value of assets.
Practical Perspective
An investment assessment should consider the solution’s full lifecycle cost, not only its purchase price.