An operating expense results from the ongoing costs a company pays to run its basic business. In contrast to capital expenditures, operating expenses are fully tax-deductible in the year they are made. As operational expenses make up the bulk of a company's regular costs, management examines ways to lower operating expenses without causing a critical drop in quality or production output. Sometimes an item that would ordinarily be obtained through capital expenditure can have its cost assigned to operating expenses if a company chooses to lease the item rather than purchase it. This can be a financially attractive option if the company has limited cash flow and wants to be able to deduct the total item cost for the year.
Read more: What is the difference between CAPEX and OPEX? | Investopedia http://www.investopedia.com/ask/answers/020915/what-difference-between-capex-and-opex.asp#ixzz4FfIhFEt2
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