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capital cost

capital cost

4 3.6
Money spent to buy things like machines or buildings for a business
  • noun
  • /ˈkæpɪtəl kɔst/
  • Specialized
translation icon : costo de capital
  • Understanding the capital cost is essential for budgeting accurately for the construction project.
  • initial capital cost
  • high capital costs
  • low capital costs

Alex, it's half the capital cost.

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Examples

  • To be competitive, the primary disposal option needed to keep capital costs low was landfilling.

    Academic text (1998)
  • The system is also very small and simple, meaning that capital costs should be relatively low.

    Academic text (2012)
  • Suppose the capital cost per unit of output is C star.

  • As the demand for new plant construction falls, I would expect the capital cost of new plants to come down.

    Academic text (2008)
  • The current generation suffers a loss of welfare due to high capital costs.

    Academic text (1993)
  • In addition, the capital cost of generating each wage-employment job is often quite high.

    Academic text (1998)
  • How many years does it take to recover the capital costs of retrofitted insulation?

    Blog text (32)
  • Anaerobic digestion is only economical for larger communities due to the high capital costs involved.

    Academic text (1999)
  • Long-term geological repositories have large up-front capital costs with minimal operating costs going forward.

    Blog text (25)
  • The company had to secure a loan to cover the initial capital cost of building the new factory.

Synonyms

capital expenditure
vscapital cost
  • Specialized
4 6.4

Money a business spends to buy or improve things like buildings, machines and equipment that last a long time

focuses on upfront one time payments rather than ongoing upgrades and maintenance

Surface Forms

capital cost singular
capital costs plural

Morphology

capital + cost

The meaning 'upfront expenditure for acquiring fixed assets' is directly derivable from combining 'capital' (funds/assets used for investment) with 'cost' (monetary amount), following the standard noun–noun pattern 'X cost' = 'cost of X'. Although it is a technical/business term, the compositional relation is clear and a B1 learner who knows both constituents should be able to infer the basic meaning.

Etymology

Capital cost comes from the idea of buying big, long-lasting things for a business: capital means buildings or machines and cost is the money paid to get them. That's why the term describes the 'upfront money' you must spend to buy those assets.