Operational Expenses

Definition

• Ongoing costs that accumulate due to normal business operations. Operational expenses are ongoing, as opposed to one-time capital expenditures. Employee wages are an example of operational expenses, as are maintenance and repair costs, insurance costs, advertising costs, property taxes, and accounting expenses. Businesses try to minimize their operational expenses without negatively affecting their bottom line in order to maximize profits. Also known as an "operating expense," "operating expenditure," "operational expenditure" or "OPEX."

Synonyms
non-recourse loan, non-recourse debt

Acronyms
OpEx

Related Terms and Acronyms

• Business (busn) — Abbreviation,
  • Economic activities of a given type.
  • A company, either for-profit or non-profit.
  • Commercial, industrial or professional activities undertaken by an entity.
• Business Interest Expense — Definition,
  • Interest acquired in business operations can be deducted as a business expense.
• Capital Expenditure — Definition,
  • The cost of making an improvement to a property.
• Cash Flow — Definition,
  • The money an investment produces after subtracting cash expenses from income.
• Commerce — Definition,
  • The systems and activities that impact business and trade within a nation and abroad.
• Expense — Definition,
  • Costs incurred through a business's operations.
• Fixed Expenses (FE) — Acronym,
  • Fixed business costs that do not change regardless of business volume, such as property rental, insurance payments, utilities, etc.
• Net Operating Loss (NOL) — Acronym, Very Important,
  • A net loss for the tax year because of business or casualty losses. Taxpayers may use an excess loss of one year as a deduction for certain past or future years.
• Operating Cash Flow (OCF) — Acronym,
  • The money a company generates from its business operations. This revenue excludes costs from certain investments.
• Other Income/Expenses — Definition,
  • Any income or expenses earned or disbursed by a business that are not clearly associated to its core operations.