Capital expenditures are a company's major, long-term expenses while operating expenses are a company's day-to-day expenses. Examples of CapEx include physical assets, such as buildings, equipment, machinery, and vehicles. Examples of OpEx include employee salaries, rent, utilities, and property taxes.
What are considered capital expenditures?
Capital expenditure (CapEx) is money that is spent to acquire, repair, update, or improve a fixed company asset, such as a building, business, or equipment.
What is the difference between capital expenditure and operating expenditure in Azure?
Capital expenditures generate benefits over a long period. These expenditures are generally non-recurring and result in the acquisition of permanent assets. Building an application can qualify as a capital expenditure. Operating expenditures are a business' ongoing costs.
What are examples of operating expenses?
An operating expense is an expense a business incurs through its normal business operations. Often abbreviated as OPEX, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.