Exam 820-605 topic 1 question 53 discussion

A. payroll

Operating expenses (OpEx) are ongoing costs incurred in the day-to-day operation of a business. Payroll, which includes employee salaries and benefits, is a significant component of operating expenses. Options B (computer equipment), C (software), and D (office improvements) are more commonly associated with capital expenses (CapEx) because they involve investments in assets that have long-term value and are expected to benefit the business beyond the current period.

Software is an asset, so it is CAPEX.

I wonder who officially put Software as a correct answer... Payroll is a true correct answer.

The operating expense (OPEX) is A. payroll. Computer equipment and software are typically considered capital expenses (CAPEX)

A - payroll. Licenses are CAPEX, software maintenance is OPEX. Some licenses may be perpetual.

payroll

payroll is the correct answer !!

Surely its pay