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" | 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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