Quote:
Originally Posted by TheScorpion
I'm confused. What is this "capital" that you speak of and how does it differentiate from the operating budget? Also, this seems like a semantic discrepancy to me -- at the end of the day, the cost was $7 billion when it was initially slated to cost $1.7 billion. London saw a similar discrepancy. I'd be curious if you can clarify this, I'm interested in knowing.  |
Simplest way:
Capital = stuff you keep. Buildings, roads, pipes, etc. Infrastructure.
Operating = stuff you don't keep. wages, supplies, services, etc. Running things.
Capital is spending money on a truck. An operations budget is paying the driver, paying for gas and servicing.