3 ms·

Tech is one of the least capital-intensive industries, no?

• rayiner 4y ago
  Paying developers to build new products is a capital expenditure.
  • zeroonetwothree 4y ago
    Typically employees are considered operating expenditure, not capital expenditure.
    • wmorgan 4y ago
      The term of art is "capitalized labor." For example, this is from Microsoft's accounting policies: > Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, software costs are capitalized until the product is available for general release to customers. Then later > The amortization of these costs is included in cost of revenue over the estimated life of the products. https://www.microsoft.com/investor/reports/ar21/index.html https://www.microsoft.com/investor/reports/ar21/index.html