CapEx and OpEx have two distinct meanings that are often confused: governance (who can spend and on what commitments) versus accounting (how costs are recorded). Capitalisation is an accounting treatment applied after spending occurs, not a funding mechanism. This confusion distorts product roadmaps when teams optimize for
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CapEx & OpEx are overloaded definitionsCapEx, OpEx and capitalisation are not the same conceptWhat CapEx isWhat OpEx isWhat the act of capitalisation isA useful rule of thumbWhy software makes this unusually messyA simple framing to keep you groundedBringing it back to the Product Operating ModelSort: