OPEX

Formal

Stands for ‘Operating Expenditure’ Costs of running and servicing a business that is ancillary to core production cost of the main product or services. This includes rent, rates, power, stationery, some staff costs, and general overheads.

Real-world Example

A retailer's monthly OPEX includes store rent, utilities, and admin staff salaries - the day-to-day costs of running the business, separate from the cost of the goods it actually sells.