Discuss the difference between O&M expenses and capital improvement expenses. How does airport financial accounting factor into...

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Operations Management

Discuss the difference between O&M expenses andcapital improvement expenses. How does airport financial accountingfactor into expenses?

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1 An operating expense is the expenditure required for the daytoday functioning of a business In contrast capital expenditure is an expense that is a business to generate a profit in the future Operating expenses and capital expenditures are managed entirely separately for accounting and tax plans When it comes to accounting and financial statements these two types of expenses are treated differently However a company can sometimes choose whether an expense will be an operating or capital expense for example whether an essential asset is leased or purchased Operating expenses are expenses incurred during the Capital expenditure is when a business contributes money uses guarantee or purchases a new property on See Answer

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