Capital Expenditures vs Operating Costs

Capital expenditures (CapEx) are the cost of purchasing, maintaining, and improving fixed assets. Examples include buildings, machinery, vehicles, and equipment. These expenditures are intended to benefit the company for more than one year so they are capitalized (made an asset) and then expensed over time through depreciation. Thus, capital expenditures are additions to the property, plant, and equipment account which appears on the balance sheet. Cash outflows for capital expenditures are shown in the investing section of the statement of cash flows.

Operating expenditures (OpEx) are the day-to-day costs of running a business. Examples of operating costs include wages, sales commissions, advertising costs, rent for an office building, and legal fees. Operating costs are expensed as incurred.
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[Mike_Haze]

This Channel really helps and the humor makes it fun to learn ! Thank you

[loganhermus]

“Legal fees for when someone dies eating your hot sauce”

Thank you for the video 😂😂

[MyFinancialFocus]

Love comparing these expenses when reading different annual reports for companies.

[alyzak.]

THANK YOU SO MUCH! You're basically getting me through my entire accounting degree xD

[eric]

ifrs 16 you can capitalize portions of rent/lease expenses

[nicolelee]

I am confused about the mention of maintenance costs in the above description of CapEx. Could you please provide examples of situations where maintenance costs should be considered as part of CapEx

[christopheru]

Really helpful, what's the difference between opex and overhead?

[dinolucas]

Hello, i need some help on classify property plant and equipment for determining the cost. Could you please help me?

[Fjhaha]

Thx so much!!! My take away, Capex, longer than one year… opex less one year… 😂😂😂😊😂

[aravindaravi]

Sir Capax team work good or bad for future in fresher...

[SeanSKim]

It is just great training one session after another. I love it except for the blackboard which is invisible a lot of times.

[tamzidraiyan]

"So good it will kill you" guess what? Someone actually died!!

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