Noncapitalized Expenditures

{
  "id": "MLC-T-ECS-001273",
  "term": "Noncapitalized Expenditures",
  "field": "Economic statistics",
  "definition": "Noncapitalized expenditures include expenses made during the year for ICT equipment including computer software not charged to asset accounts for which depreciation or amortization accounts are ordinarily maintained. Noncapitalized expenditures include purchases, operating leases and rental payments for ICT equipment, purchases and payroll for developing computer software, and software licensing and service/maintenance agreements. Such expenses fall below a firm's capitalization threshold or are not subject to capitalization (e.g. operating leases and rental payments), and are immediately written off and charged to expense accounts as incurred.",
  "references": [
    "U.S. Census Bureau Glossary"
  ],
  "url": "https://mlchart.com/terminology/economic-statistics/noncapitalized-expenditures/"
}