CAPEX / Capital expenditure
A capital expenditure (CAPEX) is any expenditure contributing value to the property and equipment of a business. It is an expenditure toward capital assets, as contrasted with spending that covers operating expenses (OPEX() or purchase investments unrelated to business.
Assets acquired through capital expenditures are usually capitalized, that is, their book value appears on the balance sheet.
As such, capital expenditures are planned, managed, and decided through the capital budgeting process. See capital budget.
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