What is one key difference between Capital expenditures and Operating expenditures?

Capital expenditures (CAPEX) involve investments in long-term assets, such as buildings or equipment, and their cost is depreciated over time. In contrast, Operating expenditures (OPEX) pertain to short-term, day-to-day expenses like salaries and utilities, which are immediately expensed in the financial period they are incurred. Options A and B are incorrect as they misstate the characteristics of CAPEX and OPEX.