The cost of purchasing any major item that will be viewed and recorded as an asset of the organisation, e.g. a building, hardware or software. The initial value of the asset is depreciated over a period of time (which may represent the perceived useful life of the asset) and the depreciation is charged against more than one accounting period. Capital Costs are usually a fixed cost and may also be referred to as 'one-off costs'. It is also possible for the market value of the asset to increase over time.
Initial costs for construction, equipment, etc.
the opportunity cost of the funds employed as the result of an investment decision; the rate of return that a business could earn if it chose another investment with equivalent risk
I nvestment cost. Includes items such as land, site development, infrastructure, plant and equipment and licence costs.
It is defined as the gross output less the labour and intermediate expenses. Thus, it represents the surplus ¡ª profits, depreciation and net interest ¡ª intended as compensation to the owners of capital.
the carrying cost in a balance sheet of acquiring an asset and bringing it to the condition where it is capable of performing its intended function over a future series of periods. Note: see also 'revenue cost'.
The total investment needed to complete a project and bring it to a commercially operable status. The cost of construction of a new plant. The expenditures for the purchase or acquisition of existing facilities.
expenditure on the acquisition of fixed assets (land, buildings, machinery, equipment), in which the expenditure is intended to benefit more than one accounting period.
all the implements, equipment, machinery and inventory used in the production of goods and services
The costs associated with the purchase, development or construction of fixed assets such as land, roadways, guideways, stations, buildings, and vehicles.
The cost of acquiring, substantially improving, expanding, changing the functional use of, or replacing a building or building system.
The cost to acquire a capital asset; basis. Capital costs include those that are recoverable through allowances for amortization, depletion, and depreciation, as well as those that are recoverable only when the asset is sold or otherwise disposed of. Also see “Amortize,” “Basis,” “Capital asset,” “Depletion,” and “Depreciation.
Fixed asset, can be buildings, hardware or software; value depreciates over time. Usually a fixed cost
This is simply the amount that the lease company pays for the vehicle, which is the purchase price that the lessor agrees to pay the dealer, plus or minus any other items that influence the final price.For example, if you agree to buy a certain vehicle for $20,000, then the dealer sells it to the lease company for that amount and they in turn base the lease to you using a capital cost of $20,000. If you were to add $1,000 of accessories, the capital cost would rise to $21,000. Conversely, if you were to put $3,000 down, the lease would be based on a capital cost of $17,000.
The cost of field development and plant construction and the equipment required for the generation of electricity.
Capital costs are costs incurred on the purchase of land, buildings, construction and equipment to be used in the production of goods or the rendering of services. In other words, the total cost needed to bring a project to a commercially operable status. However, capital costs are not limited to the initial construction of a factory or other business.
