capital expenditure

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capital expenditure

n. payment by a business for basic assets such as property, fixtures, or machinery, but not for day-to-day operations such as payroll, inventory, maintenance and advertising. Capital expenditures supposedly increase the value of company assets and are usually intended to improve productivity.

References in periodicals archive ?
Thailand's minimum wage hike to Bt300 has increased the capital costs of small and medium-sized enterprises (SMEs) by almost 6%, with the textile industry being hit hardest, said Industry Minister Prasert Boonchaisuk.
Commenting on the publication Dr Andrzej M Kotas, Managing Director of MCI said "The objective of writing this report was to identify the capital costs involved in the construction of any main part of a modern steelworks.
Would cover running costs but not enough income to repay capital costs and would need to be examined in the budget process.
Capital costs for these fields are estimated at $4,000-$5,000 per barrel/day.
Further, because of the way in which capital payments are defined, capital cost passthroughs have also contributed to the declining fiscal health of many hospitals by subsidizing debt financing.
The remainder of this article addresses the issue of the structure of the long-run prospective payment for capital by analyzing and comparing sources of variation in capital cost versus operating and total costs: The empirical models of capital- and total-cost variations that were estimated are described,
If it does meet those requirements, it is considered a capital cost and not a current expense.
and the Department of Finance, TEI recommended that the Department of Finance consider adopting a diminishing balance aggregate pool system that would permit taxpayers to recover the capital cost of leasehold improvements made to real property made by, or on behalf of, the tenants.
Alternative treatments to date have varied, usually with the amounts involved and the accounting policy of the corporation, and typically have ranged from (i) expensing the amount; (ii) adding the amount to the Capital Cost Allowance pool to which the main asset belongs; or (iii) treating the spare parts as part of inventory.

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