Capital Cost

	Capital Cost Capital costs are fixed, one-time expenses incurred on the purchase of land, buildings, construction, and equipment used in the production of goods or in the rendering of services. In other words, it is the total cost needed to bring a project to a commercially operable status. Whether a particular cost is capital or not depend on many factors such as accounting, tax laws, and materiality. Categories Capital costs include expenses for tangible goods such as the purchase of plants and machinery, as well as expenses for intangibles assets such as trademarks and software development. Capital costs are not limited to the initial construction of a factory or other business. Namely, the purchase of a new machine to increase production and last for years is a capital cost. Capital costs do not include labor costs (they do include construction labor). Unlike operating costs, capital costs are one-time expenses but payment may be spread out over many years in financial reports a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Expense An expense is an item requiring an outflow of money, or any form of fortune in general, to another person or group as payment for an item, service, or other category of costs. For a tenant, rent is an expense. For students or parents, tuition is an expense. Buying food, clothing, furniture, or an automobile is often referred to as an expense. An expense is a cost that is "paid" or "remitted", usually in exchange for something of value. Something that seems to cost a great deal is "expensive". Something that seems to cost little is "inexpensive". "Expenses of the table" are expenses for dining, refreshments, a feast, etc. In accounting, ''expense'' is any specific outflow of cash or other valuable assets from a person or company to another person or company. This outflow is generally one side of a trade for products or services that have equal or better current or future value to the buyer than to the seller. Technically, an expense is an event in which a proprietary stake i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
picture info	Natural Gas Natural gas (also called fossil gas or simply gas) is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbon dioxide, nitrogen, hydrogen sulfide, and helium are also usually present. Natural gas is colorless and odorless, so odorizers such as mercaptan (which smells like sulfur or rotten eggs) are commonly added to natural gas supplies for safety so that leaks can be readily detected. Natural gas is a fossil fuel and non-renewable resource that is formed when layers of organic matter (primarily marine microorganisms) decompose under anaerobic conditions and are subjected to intense heat and pressure underground over millions of years. The energy that the decayed organisms originally obtained from the sun via photosynthesis is stored as chemical energy within the molecules of methane and other hydrocarbons. Natural gas can be burned for he ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Cost Of Capital In economics and accounting, the cost of capital is the cost of a company's funds (both debt and equity), or from an investor's point of view is "the required rate of return on a portfolio company's existing securities". It is used to evaluate new projects of a company. It is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet. Basic concept For an investment to be worthwhile, the expected return on capital has to be higher than the cost of capital. Given a number of competing investment opportunities, investors are expected to put their capital to work in order to maximize the return. In other words, the cost of capital is the rate of return that capital could be expected to earn in the best alternative investment of equivalent risk; this is the opportunity cost of capital. If a project is of similar risk to a company's average business activities it is reasonable to use the company's average cos ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Capital Cost Allowance Capital Cost Allowance (CCA) is the means by which Canadian businesses may claim depreciation expense for calculating taxable income under the ''Income Tax Act'' (Canada). Similar allowances are in effect for calculating taxable income for provincial purposes. General rules for CCA calculation Capital property Capital property eligible for CCA excludes: * land * property the cost of which is deductible in computing the taxpayer's income * property that is described in the taxpayer's inventory * property that was not acquired for the purpose of gaining or producing income * property that was acquired by an expenditure in respect of which the taxpayer is allowed a deduction under section 37 * specified artwork and crafts acquired after November 12, 1981 * property that is a camp, yacht, lodge or golf course or facility acquired after December 31, 1974 if any outlay or expense for the use or maintenance of that property is not deductible by virtue of paragraph 18(1)(l) CCA is calcul ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Capital Recovery Factor A capital recovery factor is the ratio of a constant annuity to the present value of receiving that annuity for a given length of time. Using an interest rate ''i'', the capital recovery factor is: CRF = \frac where n is the number of annuities received.Calculator by Jenkins at University of California This is related to the annuity formula, which gives the present value in terms of the annuity, the interest rate, and the number of annuities. If $n = 1$ , the $CRF$ reduces to $1+i$ . Also, as $n \to \infty$ , the $CRF \to i$ . Example With an interest rate of i = 10%, and n = 10 years, the CRF = 0.163. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Capital Expenditure Capital expenditure or capital expense (capex or CAPEX) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an existing asset, such as repairing the roof. Capital expenditures contrast with operating expenses (opex), which are ongoing expenses that are inherent to the operation of the asset. Opex includes items like electricity or cleaning. The difference between opex and capex may not be immediately obvious for some expenses; for instance, repaving the parking lot may be thought of inherent to the operation of a shopping mall. The dividing line for items like these is that the expense is considered capex if the financial benefit of the expenditure extends beyond the current fiscal year. Usage Capital expenditures are the funds used to acquire or upgra ... [...More Info...] [...Related Items...] OR: [Wikipedia]

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