BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Rather than being expensed, the cost of the item or fixed asset is capitalized and amortized or depreciated over its useful life. Typical examples of corporate capitalized costs are items of property, plant, and equipment.

Detailed explanation-2: -Capitalized costs can include intangible asset expenses can be capitalized, like patents, software creation, and trademarks. In addition, capitalized costs include transportation, labor, sales taxes, and materials.

Detailed explanation-3: -Examples of capital expenditures made to increase or improve assets include the purchase of: new work equipment, machinery, land, plants, buildings, warehouses, furniture, fixtures, vehicles, hardware, software, and intangible assets such as patents and licenses.

Detailed explanation-4: -Capitalizing is recording a cost under the belief that benefits can be derived over the long term, whereas expensing a cost implies the benefits are short-lived. Whether an item is capitalized or expensed comes down to its useful life, i.e. the estimated amount of time that benefits are anticipated to be received.