Kyle

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An expense is money that gets used up. At the end of the month, the money is gone and so is the heat (or whatever the expense was for). An investment, on the other hand, is use of an asset to purchase another asset. The value has not been used up, but only converted from one form to another. When you treat an expenditure as an investment instead of as an expense, you are capitalizing the expenditure.
Peopleware: Productive Projects and Teams
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