When analyzing and forecasting an operating expense budget what are not included?

When analyzing and forecasting an operating expense (OpEx) budget, a new datacenter is not included because it is a capital expenditure related to acquiring or building long-term assets.

Definition of OpEx:

Refers to recurring costs required to run day-to-day business operations, like software licenses, utilities, and network connectivity.

Examples of OpEx:

Software/Hardware License Fees: Regular fees for usage.

Utilities and Power Costs: Recurring operational expenses.

Network Connectivity Costs: Ongoing expense for communication and network services.

New Datacenter:

A new datacenter is a long-term investment requiring upfront costs and is classified as CapEx, not OpEx.

Budgeting Principles: Highlights the need to differentiate between operational and capital expenses for accurate budgeting.

EC-Council CISO References: