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This is close, there is more nuance to it, and a lot of it is going to be specific to your org. If you work in office, and there are accountants there go make
by zer00eyz 3y ago
This is close, there is more nuance to it, and a lot of it is going to be specific to your org.
If you work in office, and there are accountants there go make friends. They are just another flavor of nerd, so you're gonna get along with them, and they have insights into the company that you will never get outside of the C level.
IF you dont KNOW the answers to accounting questions, take some classes. Candidly this is a function of every business that engineers should be aware of! The projects that cost money upfront (OPEX) and can provably reduce recurring costs (CAPEX) can be HUGE wins for all involved.
There is a story about how Dr's in the US have no idea what a procured costs, and that many non us ones do. Though the example is about insurance, I think the lack of awareness of costs is pervasive in more places. Do you know your AWS spend? Do you know the per customer cost/spend (is that individual or organization).... These numbers start to matter in a value engineering situation.
- radiator 3y ago> The projects that cost money upfront (OPEX) and can provably reduce recurring costs (CAPEX) So you mean OPEX are upfront costs, and CAPEX are recurring costs?
- marcosdumay 3y agoYeah, whatever mistakes the GP did, those names are the other way around.
- zer00eyz 3y agoYes I did transpose them!!! I have since had coffee and am feeling much more on the ball, thanks for catching my error folks!!!!
- datadrivenangel 3y agoCapital Expenditure (CAPEX) is the money invested up front, and Operational Expenditure (OPEX) is the money invested to operate the investment as you go.