Definition, Meaning & Synonyms
capital-cost
noun
/ˈkæpɪtl kɔst/
Definition
The total expense incurred by a business to acquire and maintain assets, which includes the purchase price and any associated expenses.
Examples
- When starting a new factory, it’s essential to calculate the capital cost to ensure that the budget aligns with your financial strategy.
- The capital cost of procurement must be factored into any project proposal to assess its feasibility.
- High capital costs can discourage small businesses from investing in new technology.
Meaning
Capital cost refers to the long-term expenses related to purchasing fixed assets like buildings, machinery, and equipment. These costs are important for businesses to consider when budgeting and planning for future growth.
Synonyms
- Investment cost
- Fixed cost
- Startup cost
