Capital Expenditure (CAPEX) is expenditure that creates an asset or that increases an existing asset's remaining useful life (RUL).
Capital Expenditure can be broken up into 4 separate components;
The International Infrastructure Management Manual defines Capital Expenditure (CAPEX) as: ''expenditure used to create new assets or to increase the capacity of existing assets beyond their original design capacity or service potential. CAPEX increases the value of asset stock.
The Victorian Auditor-General's Office defines 'Capital Expenditure' as money an entity spends on:
Non-capital Expenditure can be broken up into 2 separate components;