ASSIGNMENT - 4

Topic:

Write short notes on Capital and Maintenance Cost

Subject- Landscape Economics Management & Horticultural Practice

Made By-
Pranav Gupta
3rd SEM
Master in Landscape Architecture
Dec, 2017
 Q- Write short notes on Capital and Maintenance Cost.

Capital Cost—

 Capital costs are fixed, one-time expenses incurred on the purchase of land, buildings, construction,
and equipment used in the production of goods or in the rendering of services.
 Put simply, it is the total cost needed to bring a project to a commercially operable status.
 Whether a particular cost is capital or not depend on many factors such as accounting, tax laws, and
materiality.

For example, a fossil fuel power plant's capital costs include the following--

 Purchase of the land upon which the plant is built.

 Permits and legal costs.
 Equipment needed to run the plant.
 Costs involving the construction of the plant.
 Financing and commissioning the plant (prior to commercial operation).
 They do not include the cost of the natural gas, fuel oil or coal used once the plant enters commercial
operation or any taxes on the electricity that is produced.
 They also do not include the labor used to run the plant or the labor and supplies needed for
maintenance.