3 A B C D E F G H I J K L M N O P Q R S T U V W Y

Capital Expenditure

Capital Expenditure (CAPEX) is money spent by a company to acquire or upgrade physical assets, from trucks, to machinery, to whole factory facilities.

Capex is recorded separately from day-to-day costs, because tax authorities often encourage this investment with special allowances; and also because it is helpful to view the cost of a capital item as if it is spread over the useful life of the item. See also Capital Purchase.