capital cost

Upfront asset expenditure

Capital cost is the one-time expense of acquiring or building a long-term asset—equipment, buildings, infrastructure.

Distinguished from operating costs, which recur: The capital cost of the factory was enormous, but running costs are low.

In business planning, capital costs require upfront investment before generating returns.

Also called capital expenditure or capex.

expenditure

outlay

Money paid for something

expense · allocation · budget · funding · payment · invoice · valuation · appraisal · assessment · initial investment

depreciation

amortization

Gradual debt reduction schedule

book value · asset value · straight-line · wear and tear · obsolescence · fixed assets · tangible assets · intangible assets · balance sheet · revaluation

financing

debt financing

Raising capital through borrowing

principal · collateral · repayment · return on investment · payback period · hurdle rate · discount rate · net present value

infrastructure

public works

Government-built community structures

  • highwayMajor road for travel
  • bridgeStructure spanning an obstacle
  • tunnelEnclosed underground route

railway · airport · water supply · sewerage · telecommunications · electricity grid · urban planning · environmental impact · zoning · land acquisition

startup

seed funding

Initial startup capital infusion

incubator · accelerator · pitch deck · equity stake · business plan · burn rate · runway · sweat equity

Categories
Opposites
expenditure timing and recurrence

capital costoperating expenses

Routine business costs

operating costs · variable costs · overhead · maintenance costs · consumables

financial flow direction

capital costreturn on investment

Profit relative to cost

capital gains · revenue · income · proceeds · investment return

accounting treatment

capital costwrite-offs

Cancelled debts or expenses

Family

capital, cost, capitals, capitalize, capitalized, capitalizing, capitalization, capitalism, capitalist

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Top 200,000
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