Upgrading a machine to increase production, is called: 1) Capital Expenditure. 2) Direct Cost. 3) Indirect Cost. 4) Non of Them?

capital expenditure

1) Capital Expenditure ..........
A Capital Expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset.

Capital Expenditure

1) Capital expendture..............................A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year.

Capital expenditure as upgrading increases production capacity

 

WHEN EXPENSSS GIVE US FUTURE BENEFIT IT CAPATLIZED BUT IF IT GIVE US CURRENT BENEFIT ITS EXPENSS FOR CURRENT PERIOD

Capital Expenditure Because it is increasing the level of production.

if any expenditure increasing your production level or assets life time than it will become a cappital expenditure.

Capital Expenditure.

Capital Expenditure, Because for a Buisiness

capital expenditure

The amount incurred to ehance the production capacity of a plant or machinery is a Capital Expenditure which obviously increase the value this asset.