Question
In: Accounting
what is capital cost in own words what is capital cost and how to minimize it
Solutions
Expert Solution
Capital costs are exenses such as one-time setup cost of a plant or project, after which there will only be recurring operational or running costs. It represents an investment in the business. Capital costs will be recorded as assets on the company's balance sheet rather than as expenses on its income statement.
Examples of capital expenses include the purchase of fixed assets, such as new buildings or business equipment, upgrades to existing facilities, and the acquisition of intangible assets, such as patents.
How to reduce minimize capital expenditures.
1. Be proactive. Stude the market environemnt foresee the changes in industry.
2.Simplify the processes. Businesse must arrage to get the product to market as fast as possible.
3. Go digital. Automate the processes so that valuables time and effort can be utilised in more important areas.
4. Look for options. Before investing in assets conduct a study of available options in the market. Then select the most cost effective one.
ekkarill92 answered 1 year agoRelated Solutions
What is capital structure and how important it is? How is the cost of capital related...
In your own words describe in detail the types of cost classifications and how they relate...
In your own words describe in detail the types of cost classifications and how they relate...
Question 4 - In your own words explain what working capital management is and give an...
In your own words explain what working capital management is and give an example of one...
what is confounding and how researchers minimize it?
1.Describe, in your own words, how the cost of a product or product is determined service...
Describe in your own words what a chi-square is, what it measures, and how it is...
Describe in your own words how a job order cost system facilitates understanding how much it...
in your own words what an STL file in (SolidWorks) is and how it is used...
- You are creating an enhanced entity-relationship model for a campus information system. A junior team member...
- Develop a 5 year operations strategic plan for the European organization.This should include recommendations for issues...
- A company has lower sales volume than expected and is operating at a loss. What can...
- Extend the HW principle to apply to three alleles/locus within a population (A, a, a’) Answer...
- for this set of assignment, Moore state machine Design a sequence detector to detect "001", where...
- Electric Potential and Potential Energy (Uniform Fields) The potential difference ∆V needed to stop a moving...
- The readings and discussion this week focuses on the public ethical expectations business leaders in general....