capital expenses

Long-term investment costs

Capital expenses are costs incurred to acquire, upgrade, or extend the life of long-term assets like buildings, equipment, or machinery.

Distinguished from operating expenses, which cover day-to-day business costs, capital expenses represent investments expected to provide value over multiple years: The new factory equipment was classified as a capital expense.

Often shortened to capex.

Opposites
expense classification in accounting

capital expensesoperating expenses

Routine business costs

operational costs · operating costs · OPEX · maintenance costs · overhead costs

financial flow direction

capital expensescapital income

Earnings from investments

capital gains · revenue · investment returns · earnings · proceeds

Family

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

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