Cisco Exam 820-605 Topic 11 Question 94 Discussion

Actual exam question for Cisco's 820-605 exam

Question #: 94
Topic #: 11

How are operating expenses (OpEx) different from capital expenses (CapEx)?

AOpEx are investments a company pays for up-front, while CapEx are the on-going costs to run a business.

BOpEx includes software licenses with contracts that have user rights in perpetuity, while CapEx includes software services that are easily reconfigured.

COpEx is expenses for the day-to-day operation of a business, while CapEx is investments in assets.

DOpEx has depreciation, while there is no deprecation with CapEx.

Show Suggested Answer

Suggested Answer: B, C

by Desire at Dec 05, 2024, 05:18 AM

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Izetta

6 days ago

The key difference is the timing of the expenses. OpEx are recurring, while CapEx are one-time investments. It's a basic finance concept, really.

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Lashanda

7 days ago

I find option D quite amusing. As if there's no depreciation with CapEx - that's just absurd! Accountants would have a field day with that one.

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Ezekiel

20 days ago

Option C is the correct answer. OpEx covers the day-to-day operational costs, while CapEx refers to investments in long-term assets. This distinction is crucial for proper financial management.

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Vincent

8 hours ago

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Alyce

20 days ago

OpEx includes software licenses with contracts that have user rights in perpetuity, while CapEx includes software services that are easily reconfigured.

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Gerald

23 days ago

I think OpEx is expenses for the day-to-day operation of a business, while CapEx is investments in assets.

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Remona

26 days ago

OpEx are investments a company pays for up-front, while CapEx are the on-going costs to run a business.

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