There are about 12,000 products in the total IKEA product range. Each store carries a selection of 12000 products depending on store size. The core range is the same worldwide.
Capital expenditure or capital expense (CAPEX) is an expense where the benefit continues over a long period, rather than being exhausted in a short period. Such expenditure is of a non-recurring nature and results in acquisition of permanent assets. It is thus distinct from a recurring expense.
What it is: Capital expenditures, or capex, is money used to purchase, upgrade, improve, or extend the life of long-term assets. Long-term assets are typically property, infrastructure, or equipment with a useful life of more than one year.Let's assume Company XYZ wants to buy a new delivery truck for $40,000. When Company XYZ spends the $40,000, the book value of the company's assets are increased by $40,000.hy it Matters: Capital expenditures generally takes two forms: maintenance expenditures, whereby the company purchases assets that extend the useful life of existing assets, and expansion expenditures, whereby the company purchases new assets in an effort to grow the business.