Capital expenditure of the company

Capital expenditure
< 1 mn read

It is the money the company spent on its operation that is buying the services, maintenance of the fix and current assets and improvement of the fixed asset, for example, buildings, equipment, and vehicles. Capital expenditure is considered expenditure if the new asset is purchased or the money is spent on existing asset for repair. Therefore it is capital used to upgrade fix asset in the company like plants, equipment, and property. In the accounting section, capital expenditure is added to the assets account that show increase in the asset’s basis.

Capital expenditure is illustrated in the capital that is spent on acquiring the fixed asset or in other cases intangible assets. Capital spends on Repairing and upgrading existing asset so that it can improve its performance and expand it operation duration. And finally capital spend on starting or acquiring the new business. Therefore capital expenditure is recorded in the financial statement of the company.

Project

It is collaboration enterprise that is strategically planned and also researched by the individual or a group of individual with a common objective in their mind. Normal, companies hold the project in their operation. For example the promotion project in the Marketwatch company, that is used to promote the new product on the market. It one of academic collaboration project because it is used to educate or create awareness of the new existing product on the market. It always has a strategic structure that is used and followed by the project team. And it is led by a project manager. In some cases, the project is research collaborated if it’s initiated to investigate a certain subject. The finding got in the project normally show uniqueness about that subject selected.

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