What type of expense would consider this?

Your FinOps lead has requested all cloud expenses and would like to understand all costs realized and paid for this quarter.

What type of expense would consider this? (Select One)
A . Costs of Goods Sold (COGS)
B . Weighted Average Cost of Capital (WACC)
C . Capital Expenditure (CAPEX)
D . Operational Expenditure (OPEX)

View Answer

Answer: D

Explanation:

When you capitalize something, it becomes an asset of the company, whether or not it gets expensed within a specific period (CAPEX). If it benefits only the current period, then it’s an expense that is expended in this period with no future benefit, making it an operational expense (OPEX). Capitalization causes total outlays to differ from expenses in a similar period, with the delta being that which is capitalized.