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Are these expenses CAPEX or OPEX

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SUKUMAR ANNAMALAI SINGARAVEL

CEO

21 Points Posted on 30 June 2023

Hello

Can you please comment if the following expenses to be under CAPEX or OPEX :

1. Development of a new play grou8nd for the community

2. Transplantation of 10 grown up trees within the premises to extend the life of the trees

3. Community Hall renovation by fixing new tiles

4. Light Fittings ( Not bulbs)

5. Plant pots

Thank you for your comments

Sukumar

Replies (1)

1. Creation of CAPEX, a new play group for the neighborhood. This capital expenditure will be put to good use run 3 for a long time.
2. OPEX, as it is a type of routine maintenance meant to prolong the life of already-owned assets.
3. CAPEX. Improvements that prolong the life of an asset that already exists are categorized as capital expenditures.
4. CAPEX. The usable life of these fittings is longer than a year.
5. OPEX. These are inexpensive consumables that don't last long and must be constantly refilled.