Reference Entry

capital expenditure

Edited by Jonathan Law

in A Dictionary of Business and Management

Sixth edition

Published in print January 2016 | ISBN: 9780199684984
Published online February 2016 | e-ISBN: 9780191765278
capital expenditure

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The expenditure by an organization of a significant amount for the purchase or improvement of a *fixed asset; the amount expended would warrant the item being depreciated over an estimated useful life of a reasonably extended period. Capital expenditure is not charged against the profits of the organization when it takes place, but is regarded as an investment to be capitalized in the ...

Reference Entry.  106 words. 

Subjects: Business and Management

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