Capital Expenditures, or CapEx for short, are expenses used to purchase, improve or extend the useful life of an asset. These items typically have a longer lifespan, such as equipment or building structures. Immediate Expenses, on the other hand, are one-time costs that are necessary for day-to-day business operations and are not expected to provide long-term benefit. Examples of Immediate Expenses include office supplies, wages, marketing costs, and utilities. Both types of expenditures are important components of any business budget; however, capital expenditures should be viewed more as investments into the future health of your company.
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