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.
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 »The Five Generations of Computers
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 »Cloud Computing Market Leaders, 2015
If not for AWS, Microsoft would dominate the cloud. The race to capture market share will grow ever more fierce in the years ahead. Here's a look... Read More »
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 »Network Fundamentals Study Guide
A network is a group of two or more computer systems or devices, linked together to share resources, exchange files and electronic communications.... Read More »Computer Architecture Study Guide
This Webopedia study guide describes the different parts of a computer system and their relations. 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 »