Purpose Statute - Response silold Q13C023. a. Summary of statute substance b. Definitions of expense and investment 1. . Expenses are costs of resources consumed in operating and maintaining the Department of Defense. 2. Investments are costs to acquire capital assets such as real property and equipment. c. List of major DoD appropriation categories 1. Operations & Maintenance (O&M) are expenses as they are intended for items DoD will receive a benefit for a long time. 2. Military Personnel (MILPERS) are expenses as they are labor costs or personnel salaries. 3. Research, Development, Test & Evaluation (RDI&E) are both expenses and investments. It covers both since they are used to pay salaries (expense) and also used to buy test equipment (investment). 4. Procurement is an investment when drawn from the supply system. 5. Military Construction (MILCON) are investments as they fund major construction projects. d. Whether expenses or investments are contained in each major appropriation category 1. See above - C e. Example of a violation and potential corrective action A violation would be when O&M funds are used to purchase equipment. A corrective action would be XXX