Operational expenses, often referred to as OPEX, are the costs a business incurs during its normal operations. These expenses include items such as salaries, rent, utilities, and office supplies. They are essential for maintaining day-to-day activities and ensuring the business runs smoothly. Unlike capital expenses, which are investments in long-term assets, operational expenses are typically short-term costs. Businesses need to manage these expenses carefully to maintain profitability and ensure they can cover their ongoing operational needs. Understanding and controlling OPEX is crucial for effective financial management.