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capital expenditures (CapEx)

The term CapEx (Capital Expenditures) originates from business administration. It refers to the capital employed for long-term capital goods, for production facilities, real estate, computer systems, peripheral equipment, etc. Especially in equipment-intensive industries or in data centers

, CapEx is an important accounting parameter. Managing the optimal use of capital for capital-intensive investments is a long-term strategy that must take into account the entire life cycle of

the capital goods. The right time to invest, the best financing, and the improvement in the production process associated with the investment, or in the case of computer technology, the increase in the performance of a computer system.

Development of CapEx and Capital Expenditureswith Depreciation

Development of CapEx and Capital Expenditureswith Depreciation

CapEx costs are among the assets that increase on-balance sheet assets and are depreciated over longer periods of time. CapEx reflects the costs of initial equipment, renewals, expansions, for spare parts, interest and depreciation for capital goods. In contrast, expenses for business operations are not included in CapEx, but in Operating Expenditures (OpEx).

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Englisch: capital expenditures - CapEx
Updated at: 20.02.2013
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