ComputingComputing equipment such as laptops.
SoftwareIn many cases, software development is considered a capital expense that produces an intangible capital asset.
MachinesEquipment such as robots or power generators.
FacilitiesOffice buildings, factories, data centers and other facilities.Infrastructure such as solar panels.
Land ImprovementsFences, gardens and other land improvements.
Research & DevelopmentResearch and development produces things such as new product designs that are an investment in the future. However, the benefits of R&D tend to be uncertain. For example, you might develop a product that you never end up launching. As such, R&D is typically considered an operating expense. If you purchase an in-process research & development project from another firm, this can be capitalized.
TransportAircraft, ships and commercial vehicles.
Professional ToolsExpensive professional tools that have a long lifespan such as a musical instrument or kitchen appliance for a restaurant.
|Overview: Capital Budget
A capital budget is a budget for investments in a business.