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Iirc, employees are operating expenses and TVC can be capital expenses. One apparently looks better than the other. Also, employees in the USA can be very expe
by readthenotes1 4y ago
Iirc, employees are operating expenses and TVC can be capital expenses. One apparently looks better than the other.
Also, employees in the USA can be very expensive because of company benefits (mostly health care) costs.
Finally, it is not unusual for employees to be less motivated and/or capable than contractors.
I've been at a few places where employees where dropped before contractors...
- arbitrary_name 4y agoWhat? There's no way to classify vendor or contractor spend as capex. The reason they are used is for tasks that are repetitive, or with no career progression, or that may not be needed long term. Your comment about cost is correct as well.