Computing
Computing equipment such as laptops.Software
In many cases, software development is considered a capital expense that produces an intangible capital asset.Machines
Equipment such as robots or power generators.Facilities
Office buildings, factories, data centers and other facilities.Infrastructure
Infrastructure such as solar panels.Land Improvements
Fences, gardens and other land improvements.Research & Development
Research 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.Transport
Aircraft, ships and commercial vehicles.Professional Tools
Expensive professional tools that have a long lifespan such as a musical instrument or kitchen appliance for a restaurant.| Overview: Capital Budget | ||
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Definition | A capital budget is a budget for investments in a business. | |
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