A web agency used to buy all development servers, causing high upfront costs and idle capacity. After moving to the cloud, they pay monthly for VMs and storage. This represents a shift from which type of expenditure to which other type?

The correct answer is From CapEx to OpEx. Capital Expenditure (CapEx) involves significant upfront spending on physical assets, like the development servers the agency used to buy. This results in high initial costs and potential underutilization. Operational Expenditure (OpEx), on the other hand, involves paying for services or resources as they are consumed, typically on a recurring basis (e.g., monthly payments for cloud VMs and storage). This shifts costs from large, infrequent outlays to smaller, regular payments, aligning expenses with usage. "From OpEx to CapEx" is incorrect because the scenario describes the opposite transition. "From Fixed Cost to Variable Capital" is not standard financial terminology in this context. "From Depreciation to Amortization" relates to accounting methods for asset value over time, not the fundamental shift in expenditure type described.