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Cisco 820-605 Exam - Topic 11 Question 94 Discussion

Actual exam question for Cisco's 820-605 exam
Question #: 94
Topic #: 11
[All 820-605 Questions]

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

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Suggested Answer: B, C

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

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Leah
6 months ago
OpEx = operating costs, CapEx = capital investments. Simple!
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Edda
6 months ago
I thought OpEx were the ongoing costs, not the other way around?
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Rory
6 months ago
Wait, isn't CapEx supposed to include depreciation too?
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Wei
7 months ago
Totally agree, C is spot on!
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Hillary
7 months ago
OpEx is for daily operations, CapEx is for long-term investments.
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Kayleigh
7 months ago
I vaguely recall that OpEx doesn't get depreciated like CapEx does, but I’m not confident about the specifics.
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Teddy
7 months ago
I feel like I mixed up OpEx and CapEx in my studies. I thought CapEx was more about long-term investments, but I can't remember the details.
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Lisbeth
7 months ago
I remember practicing a question that said OpEx is related to day-to-day operations, so I think option C might be correct.
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Loreta
8 months ago
I think OpEx are the regular costs for running a business, but I'm not sure if CapEx is just about buying assets or if it includes other things too.
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Ettie
8 months ago
I'm a little confused by the wording of the options. I know OpEx and CapEx are different, but I'm not sure I fully grasp the nuances. I'll try to focus on the core concepts of ongoing expenses versus capital investments, and see if I can work through this logically.
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Svetlana
8 months ago
Okay, I've got this. OpEx are the regular, recurring expenses like rent, utilities, and salaries, while CapEx are the one-time investments in things like equipment, property, or technology. I think the key is that CapEx adds value to the business long-term, while OpEx is just the cost of doing business day-to-day.
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Beula
8 months ago
Hmm, I'm a bit unsure about the difference between OpEx and CapEx. I know one has to do with ongoing costs and the other with investments, but I'm not totally clear on the specifics. I'll need to review my notes to make sure I understand this properly.
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Jamie
8 months ago
This question seems pretty straightforward. I think the key difference is that OpEx are the day-to-day expenses to run the business, while CapEx are the investments in long-term assets. I'll focus on that distinction in my answer.
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Karl
1 year ago
Wait, so I can't expense my daily coffee runs as CapEx? That's just unfair, I need those lattes to keep me going!
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Yuki
11 months ago
Don't worry, your daily coffee runs would fall under OpEx, not CapEx!
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Ressie
11 months ago
C) OpEx is expenses for the day-to-day operation of a business, while CapEx is investments in assets.
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Tonja
12 months ago
A) OpEx are investments a company pays for up-front, while CapEx are the on-going costs to run a business.
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Gabriele
1 year ago
I'm surprised option B even made it as a choice. Software licenses and services are a mix of OpEx and CapEx, not a clear-cut distinction.
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Carrol
12 months ago
I agree, there can be overlap between OpEx and CapEx when it comes to software licenses and services.
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Raymon
12 months ago
C) OpEx is expenses for the day-to-day operation of a business, while CapEx is investments in assets.
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Kayleigh
1 year ago
A) OpEx are investments a company pays for up-front, while CapEx are the on-going costs to run a business.
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Izetta
1 year 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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Thurman
12 months ago
D) OpEx has depreciation, while there is no deprecation with CapEx.
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Carey
1 year ago
C) OpEx is expenses for the day-to-day operation of a business, while CapEx is investments in assets.
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Florinda
1 year ago
A) OpEx are investments a company pays for up-front, while CapEx are the on-going costs to run a business.
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Lashanda
1 year 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
1 year 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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Sue
1 year ago
Depreciation is a key factor in OpEx, while CapEx doesn't have that. Good to know!
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Brittani
1 year ago
D
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Tess
1 year ago
Thanks for the clarification! OpEx being up-front investments and CapEx being ongoing costs makes sense.
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Avery
1 year ago
A
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Mel
1 year ago
That's right! OpEx is for day-to-day expenses and CapEx is for long-term investments.
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Vincent
1 year ago
C
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Alyce
1 year 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
1 year 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
1 year 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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