Capital expenditure

Capital Expenditure
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Capital Expenditure
Expenditure on an item has to be considered before being approved. One of the thresholds that would determine the need for capital expenditure on an item is its importance. For capital to be spent on an item, it has to be of importance to the organization. Spending on an item that is not going to serve any purpose is unnecessary. The second threshold is the budget. Budgeting is critical in an organization because it determines its spending capacity. If an item has been budgeted for, then it can be acquired without any added cost. However, if an item has not been budgeted for, then there is a need to confirm that th...