What is Operating Expenditure?
Operating Expenditure
Operating Expenditure (OpEx) represents the ongoing, daily cash costs required to run a startup's business operations, excluding COGS.
Detailed Deep Dive
Operating Expenditure (OpEx) represents ongoing business costs. Startups manage OpEx closely to optimize margins and build a clear path to profitability.
Frequently Asked Questions
Q:What are examples of OpEx?
Office rent, sales salaries, marketing spend, software subscriptions, insurance, and utilities.
Q:How does OpEx affect profitability?
OpEx is subtracted from gross profit to determine operating income; keeping OpEx low scales margins.
Quick Facts
- CategoryMetrics
- Key ApplicationOperational margin analysis and budget optimization
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