Expenses question

[Former Member]

Hi all,

what is meant by Capital and Operating Expenses? what is the difference between both?

Any input is highly appreciated!!

Thanks,

Avani.

[Lakshmipathi · Accepted solution]

Dear Avani

To run a plant / office, what are all expenses you incur to do business, is called operating expenses

Capital expenditure is a payment for basic assets such as property, fixtures, or machinery, but not for day-to-day operations such as payroll, inventory, maintenance and advertising. Capital expenditures supposedly increase the value of company assets and are usually intended to improve productivity.

thanks

G. Lakshmipathi

[Former Member]

hi neetha,

capital expenses - payment by a business for basic assets such as property, fixtures, or machinery, but not for day-to-day operations such as payroll, inventory, maintenance and advertising. Capital expenditures supposedly increase the value of company assets and are usually intended to improve productivity.

Operating Expenses

Expenses associated with running a business but not considered directly applicable to the current line of goods and services being sold. These include Sales and Marketing, R & D, and General and Administrative costs (including the salaries of people working in these areas).

regards

sadhu kishore