on 04-14-2008 7:22 AM
Hi all,
what is meant by Capital and Operating Expenses? what is the difference between both?
Any input is highly appreciated!!
Thanks,
Avani.
Dear Avani
To run a plant / office, what are all expenses you incur to do business, is called operating expenses
Capital expenditure is a payment for basic assets such as property, fixtures, or machinery, but not for day-to-day operations such as payroll, inventory, maintenance and advertising. Capital expenditures supposedly increase the value of company assets and are usually intended to improve productivity.
thanks
G. Lakshmipathi
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
hi neetha,
capital expenses - payment by a business for basic assets such as property, fixtures, or machinery, but not for day-to-day operations such as payroll, inventory, maintenance and advertising. Capital expenditures supposedly increase the value of company assets and are usually intended to improve productivity.
Operating Expenses
Expenses associated with running a business but not considered directly applicable to the current line of goods and services being sold. These include Sales and Marketing, R & D, and General and Administrative costs (including the salaries of people working in these areas).
regards
sadhu kishore
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
User | Count |
---|---|
93 | |
11 | |
11 | |
6 | |
6 | |
4 | |
3 | |
3 | |
3 | |
3 |
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.