Examlex
The decision to expense or capitalise an item is important because:
Capacity
The maximum amount that something can contain or produce.
Labour Costs
The total expenditures for hiring employees, including wages, benefits, taxes, and any other costs associated with employing labor.
Overhead Costs
Indirect expenses related to the operation of a business, such as rent, utilities, and administrative costs.
Variable Costs
Variable Costs are expenses that change in proportion to the activity of a business.
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