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OPEX Training

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OPEX Training

An operational expenditure (OPEX) is the money a company spends on an ongoing, day-to-day basis to run a business or system.

They are the costs that a business incurs while turning its inventory into an end product. Hence, depreciation of fixed assets that are used in the production process is considered operational expenditure. OpEx is also known as operating expenditure, revenue expenditure or an operating expense.

Depending upon the industry, these expenses can range from the ink used to print documents to the wages paid to employees. The counterpart, Capex, is the money spent on the improvement or purchase of fixed assets.

Operational expenditure is essential to consider as they accurately reflect the costs of doing business since no future benefits are gained.

If the Opex is too high, a company can quickly lose money.

Unlike Capex, the debt of which can be offset by future benefits, suffering deficit to pay for operational expenditure is always a problem.

Operating expenses are necessary and unavoidable for most businesses. Some firms successfully reduce operating expenses to gain a competitive advantage and increase earnings.

However, reducing operating expenses can also compromise the integrity and quality of operations. Finding the right balance can be difficult but can yield significant rewards.

The Internal Revenue Service (IRS) allows businesses to deduct operating expenses if the company functions to earn profits.

However, the IRS and most accounting principles distinguish between operating expenses and capital expenditures.

Often abbreviated as OPEX, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, and funds allocated for research and development.

One of the typical responsibilities that management must contend with is determining how to reduce operating expenses without significantly affecting a firm’s ability to compete with its competitors.

You might be interested in CAPEX training as a next step.

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  • COURSE TYPE Practitioner
  • COURSE NUMBER
  • DURATION 2 days
  • COURSE ACCREDITED BY Local Certificate

YOU WILL LEARN HOW TO

Operating expenses are necessary and unavoidable for most businesses.  Some firms successfully reduce operating expenses to gain a competitive advantage and increase earnings.

IMPORTANT COURSE INFORMATION

Certificate

Students will receive Strategic Axis professional certificate accredited by UAE Government.

COURSE OUTLINE

Modules:

Module 1: What are operating expenses (OPEX)?

What are operating expenses (OPEX)?

Define your terms! What does “operating expense” mean?

Operating expense role in budgeting and spending

Operating expense role on the Income statement

How do operating expenses bring tax savings?

Example Income statement with operating expenses

Module 2: Explaining Operating Expense in Context

The Meaning of Expense-Related Terms

Expenses Use Up Assets

Operating Expenses and Non-Cash Expenses

Operating Expense Role in Budgeting and Spending

Understanding the OPEX Budget

The Operating Expense (OPEX) budget in the budget hierarchy

Operating Expense Role on the Income Statement

Significant Expense Item Categories

How Do Operating Expenses Bring Tax Savings?

Module 3: OpEx with Virtualization and Virtual Systems Management

OpEx Reduction – Reality of Virtualization

Key Virtualization KPIs to Measure OpEx Savings

The frequency of Service Failures

Mean Time to Repair (MTTR)

Improved Staff Efficiency

Faster Service Deployment and Migration

Overall Ease of Management

Module 4: OPEX: Calculating, Reports and Analysis

Approaches to OPEX forecasting

-Bottom-up forecasting

-Base-step-trend forecasting

Operating expenditure categories

Base, step and trend forecasting approach

Links between capital and operating expenditure forecasts

Operating Expense Ratio (OER)

Operating Expense Control

Criticality Analysis for optimizing OPEX cost lifecycle

  • In The Classroom

  • Live, Online

  • Private Team Training

  • Indiviual Private Session

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