Uncommon
Capital expenditure
Costs associated with 'fixed assets'
Capital expenditure
Capital expenditure or capital expense (abbreviated capex, CAPEX, or CapEx) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment or land. It is considered a capital expenditure when funds are spent to purchase a new asset or to extend the useful life of existing assets, such as major structural repairs or upgrades. Capital expenditures contrast with operating expenses (opex)—ongoing expenses that are inherent to the operation of the asset. Opex includes items like electricity or cleaning. The difference between opex and capex may not be immediately obvious for some expenses. As an example, repaving a parking lot may be thought of inherent to the operation of a shopping mall. Similarly, the cost of software for a business (either software development, software as a service, or software licensing) might fall into either opex or capex, depending on whether it is merely business as usual, or something new...
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