CapEx Capital Expenditure Definition, Formula, and Examples

Operating expenses (OpEx) are costs incurred in day-to-day operations, while CapEx represents long-term asset investments. Let’s say ABC Company had $7.46 billion in capital expenditures for the fiscal year compared to XYZ Corporation which purchased PP&E worth $1.25 billion for the same fiscal year. The cash flow from operations for ABC Company and XYZ Corporation … Read more

How to Calculate Marginal Cost

Marginal costs are the increase or decrease in total costs resulting from one extra unit of production, and they can include both fixed and variable costs. Costs of production (which include fixed costs as well as variable costs) increase with more production because producing more units means buying more raw materials and/or hiring more workers. … Read more