FEATURES AND EXAMPLES OF CAPITAL EXPENDITURE

SPECIAL FEATURES:

1. Capital expenditure is made for acquiring fixed assets.
2. These expenditure increases the value of assets.
3. These expenditure also increase the profit earning capacity of business.
4. These expenditures are casually incurred.

EXAMPLES:

• Purchasing fixed assets.
• payment for goodwill.
• payment of wages for construction.
• payment of wages for addition of rooms.
• Installation charges of plant and machine.
• Cost of significant upgrades to an existing facility.
• Abstracts of title costs.
• Credit cards,membership fees.
• Drainage costs.
• Electrical system replacement costs.
• Fire escapes.
• Irrigation system costs.
• Insulation costs.
• Well water costs.
• Package design costs.
• Performance bond premiums.
• Author's publishing costs.
• Copyright development costs.
• Display cases, remodeling costs.
• Electric wiring costs.