Operational expenditure, often abbreviated as OpEx, refers to the ongoing costs for running a business's day-to-day operations. This includes expenses such as salaries, rent, utilities, and supplies. These costs are essential for maintaining the regular functions of a company and are typically recorded on the income statement. Unlike capital expenditures, which involve long-term investments in assets like equipment or property, OpEx is usually short-term and recurring. Managing operational expenditure effectively is crucial for a business's profitability, as it directly impacts cash flow and overall financial health.