Which of the following is the best example of CapEx?

The correct answer is B. Vehicles. Capital Expenditure (CapEx) refers to funds spent to acquire, upgrade, or maintain long-term physical assets that provide value over multiple years. Vehicles are tangible, long-lived assets that appear on a balance sheet and are depreciated over time - a classic CapEx example…

Project Management Concepts

Question

Options

ATaxes
BVehicles
CSalaries
DUtilities

How the community answered

(65 responses)

A
2% (1)
B
92% (60)
C
5% (3)
D
2% (1)

Explanation

Capital Expenditure (CapEx) refers to funds spent to acquire, upgrade, or maintain long-term physical assets that provide value over multiple years. Vehicles are tangible, long-lived assets that appear on a balance sheet and are depreciated over time - a classic CapEx example. Taxes (A), salaries (C), and utilities (D) are all Operating Expenditures (OpEx): recurring, short-term costs required to run day-to-day business operations. The key distinction is that CapEx creates a lasting asset, while OpEx is consumed in the current period.

Topics

#Capital Expenditure#Financial Management#Project Budgeting#Cost Classification

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