An acronym for Capital Expenses, CapEx refers to business costs associated with acquiring, developing or upgrading physical assets such as hardware systems or intangible assets like patents and other intellectual property.
Capital expenditures stand in contrast to operating expenditures, or OpEx, which are the ongoing costs associated with the daily operations of business products, services and/or systems.
CapEx from an Accounting Perspective
From an accounting perspective, CapEx or capital expenditures refer to business costs allocated to creating future benefits, such as acquiring new fixed assets or upgrading existing ones.
The monetary benefits from CapEx costs are expected to extend beyond the current tax year, and as a result, CapEx costs typically need to be accounted for on income statements with depreciation (tangible assets) or amortization (intangible assets such as patents or other intellectual property) factored into the equation.
Learn about each of the five generations of computers and major technology developments that have led to the current devices that we use today. Read More »Small Business Marketing's Greatest Hits
The following compilation of small business marketing tips highlights some of the expert advice published over at Small Business Computing. Read More »13 Best Free Android Apps
From secure messaging to document editing, our top free must-have apps have been rated, reviewed and named the best free Android apps of 2015. Read More »
With cost and security in mind, we look at five cloud storage options that will suit the needs of most home and SMB owners. Read More »Windows 10 Tips for Desktop PC
Five basic tips to help you customize Windows 10 on your desktop PC. Read More »29 Free Android Apps for Cash-Strapped Students
From wacky alarm clocks to lecture hall tools and after class entertainment, these Android apps are a good fit for a student's life and budget. Read More »
Stay up to date on the latest developments in Internet terminology with a free weekly newsletter from Webopedia. Join to subscribe now.
- Watch Datamation's editor James Maguire moderate roundtable discussions with tech experts from companies such as Accenture, Dell, Blue Jeans Network, Microsoft and more »