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Capital Expenditure - Capital Budgeting – A Conceptual Framework
Financial Management - Capital Budgeting – A Conceptual Framework
Capital Expenditure - Capital Budgeting – A Conceptual Framework
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A capital expenditure is an expenditure incurred for acquiring or improving the fixed assets, the benefits of which are expected to be received over a number of years in future.
Capital
Expenditure
A capital expenditure is an expenditure incurred for acquiring or improving the fixed assets, the benefits of which are expected to be received over a number of years in future. The following are some of the examples of capital expenditure.
1. Cost of acquisition of permanent assets such as land & buildings, plant & machinery, goodwill etc.
2. Cost of addition, expansion, improvement or alteration in the fixed assets.
3. Cost of replacement of permanent assets.
4. Research and development project cost etc.
5. Capital expenditure involves non-flexible long term commitment of funds.
A capital expenditure is an expenditure incurred for acquiring or improving the fixed assets, the benefits of which are expected to be received over a number of years in future. The following are some of the examples of capital expenditure.
2. Cost of addition, expansion, improvement or alteration in the fixed assets.
3. Cost of replacement of permanent assets.
4. Research and development project cost etc.
5. Capital expenditure involves non-flexible long term commitment of funds.
Tags : Financial Management - Capital Budgeting – A Conceptual Framework
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