Difference Between Capitalize And Capitalization
I n Accounting , Capitalize me ans adding cost to the Fixed Assets / N on Current Assets rather than charged to Expense (called Capital Expenditure ) for the accounting period while capitalization is the process or method in which any cost is added to the total cost of assets and as it is capitalized during the accounting period. To capitalize an expense is said to be a capitalization process. So we can say that in this whole process, an expense is capitalized is known as capitalization in accounting . Examples for capitalize and capitalization are wages paid for the installation of machinery, addition room constructed for the furniture, cost paid to improve machinery, etc.