Expense versus Capital expenditures
Expense versus Capital expenditures
(OP)
Can anyone tell me how the bean counters determine what is a capital expenditure and what is an expense expenditure? Thanks
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Expense versus Capital expenditures
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RE: Expense versus Capital expenditures
2) The thing must cost above a certain threshhold, $3000 in my complany. Spending $3000 for 20 individual racks does not qualify.
RE: Expense versus Capital expenditures
I hope this helps.
RE: Expense versus Capital expenditures
If a company is building a new process line the cost of consultants and other contract labor can be charged to the cost of the equipment. It's why you hear of things like a company laying off "permenant staff" at the same time hiring contract engineers and designers. The employee is and expense while the contractors are part of the equipment just like nuts and bolts. There cost can be depreciated along with the equipment wile the employee is an ongoing expense.