Capitalized Cost An expense that is added to the cost basis of a fixed asset on a company's balance sheet. Capitalized costs are incurred when building or financing fixed assets. Capitalized costs are not expensed in the period they were incurred, but recognized over a period of time via depreciation or amortization. Breaking It Down: Capitalizing costs is a method of following the matching principle of accounting. The matching principle seeks to...
Related to "Capitalized Cost" ![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_ukKb42cb5uRih8ufzzw95HBKH9YHzfE1s7v5ZRuG_OMBBW-5fSBRrOr2uoDuwA7HsKdG6SwEvWS8wca6CretkU9fm1gdP5g4of7_XCT1BB_kFWbkVF1sdc0ApgZuyJnN6x45OoT-mGqjo=s0-d) | Capitalized Cost - Video A capitalized cost is an expense associated with a fixed asset that is added to the basis of that asset and... | |
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