HOTSPOT - For each of the following statements, select Yes if the statement is true. Otherwise, select No. NOTE: Each correct selection is worth one point. Hot Area:
Suggested Answer:
Box 1: No - Building a data center infrastructure is capital expenditure, not operation expenditure.
Box 2: Yes - OpEx is ongoing costs (costs of operations) such as staff salaries.
Box 2: Yes - OpEx is ongoing costs (costs of operations) such as leasing software. If you purchased software as a one-off purchase, that would be CapEx, but leasing software is ongoing so it's OpEx.
N ,Y ,Y
OpEx refers to the day-to-day operational expenses that support the business. These typically include general and administrative expenses, employee wages, research and development, cost of goods sold (COGS), maintenance, repair costs, leases, etc.
Key Takeaways. It is important for these questions to know the main difference between CapEx and OpEx
Capital expenditures are a company's major, long-term expenses while operating expenses are a company's day-to-day expenses.
Examples of CapEx include physical assets, such as buildings, equipment, machinery, and vehicles. (physical and hardware related)
Examples of OpEx include employee salaries, rent, utilities, and property taxes. This relates to people and other expenses.
For example. I own a fleet of taxis.
• I buy the cars (CapEx). That is my investment
• Then I pay taxi drivers wages to drive the taxis (Opex), as well as fuel , registration, insurances, licenses, etc.
• The taxi will last for many years , but not so the fuel, licenses and registration, etc
The Taxi Driver operates the taxi (asset)
I recently took this exam and 80 to 90% questions from Exam Topics. I got 968 score and really helpful. given answer is correct. some questions have wrong answers, but go through the discussion and understand the topic and prepare. good luck to all who is preparing and taking the exam.
I recently took the exam and about 80% of the questions were on my exam.
These are the questions that I could find on this site:
38, 44, 67, 71, 100, 103, 111, 113, 123, 125, 132, 145, 157, 181, 210, 215, 275, 283, 289, 306, 336, 342, 378, 390, 420, 425, 431, 432
You typically own the items you categories as CapEx. A lease on a software is not a CapEx it is OpEx.
https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/strategy/business-outcomes/fiscal-outcomes
NYY
Operating expenses include employee salaries, buildings and utilities, tools, materials and equipment, and marketing costs. Operating expenses are represented
Leasing doesn't mean possession, you may give the item/rights (software in this case) back and stop the payment which is a flexible method, so leasing is OpEx.
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