sorting of the different types of expenses
associated with the assets
categories that are necessary for efficient and effective operations
and management of the building.
The two broadest, and most common,
classes of expenses are identified as follows:
Classification is necessary to ensure
that expenses are:
sometimes arises when certain capital expenses are misclassified and
funded from the operating budget. There are three scenarios for a CapEx
Misclassification can result in double
counting and under-reporting.
- Capital expenditures from the reserve
- Capital expenditures from the operating
- Capital expenditures transferred to