Capital Costs Assignment Help | Australia Assignment Help Experts Capital costs Capital costs are fixed and one time set up costs on the purchase of land, building, machinery and construction that are used in the production of goods and delivering services to customer (Pratt & Grabowski, 2010). It is the total cost that is needed to complete a project for commercial operable status. In the capital costs, expenses for tangible goods like plant and machinery and intangible goods like trademarks and patents are included. The estimation of capital cost is important to take decision about the development of new projects or extending of existing plants.

Importance in hotels In the dynamic business environment, hotel industry is getting more complex. In order to start a new hotel, it is important to estimate the capital costs of all items in hotels. For estimation, it is important to identify all items that will be needed in hotel and capital cost that will incur. In the hotel, equipments are costly and main costs are incurred in furnishing bedrooms and common areas, equipping kitchens, a bar area and so on (Dopson & Hayes, 2008). Along with this, expenditure on security measures is also capital costs in hotel industry. For reducing costs, management can negotiate with suppliers to get a discount. In addition of this, capital cost is included hiring and loan installment costs of hotel equipment that will be paid in monthly term. You can avail 24×7 original university business assignment help services from our experts. You can also first check our assignment writing services then you can confrim your assignment with us