capital expense

Definition of "capital expense"
  1. A cost that a business incurs for a benefit that will extend beyond the current fiscal period
How to use "capital expense" in a sentence
  1. Acquiring new machinery is a capital expense because it will create benefits for the company over a long period of time.
  2. Land and buildings are considered capital expenses since they provide value for years.
  3. Undergoing a major software upgrade can be classified as a capital expense as it will lead to improved efficiency in the long run.

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