Project Manager Interview question - CapEx vs OpEx

Question

During IT Project Manager Interview you are asked the following question:

How do you work with large enterprise project budget? CapEx vs OpEx?

How would you respond?

Answer 1

Answer straight to the point.

• Opex (operating expenditure) is an ongoing cost for running a product, business, or system.

• Examples: the cost of employees and service expenses such as rent and water, gas, electricity. 

• Capex (capital expenditure) is the cost of developing or providing non-consumable parts for the product or system. 

• Examples: Building, machines, Patents, Serverr.

Hope this helps!