The cost of purchasing any major item that will be viewed and recorded as an asset of the organisation, e.g. a building, hardware or software. The initial value of the asset is depreciated over a period of time (which may represent the perceived useful life of the asset) and the depreciation is charged against more than one accounting period. Capital Costs are usually a fixed cost and may also be referred to as 'one-off costs'. It is also possible for the market value of the asset to increase over time.
Initial costs for construction, equipment, etc.
the opportunity cost of the funds employed as the result of an investment decision; the rate of return that a business could earn if it chose another investment with equivalent risk