Transcribed Image Text
The most obvious cost in a capital budget is the actual cost ofthe capital expenditure item. We must also consider other coststhat will be incurred when we make the capital expenditure(purchase). These costs are important to include because they canbe the difference between a successful implementation of thecapital expenditure item and staying on budget. After reviewing thetextbook readings, provide an example of a healthcare capitalexpenditure. Explain the rationale behind the purpose of a capitalexpenditure budget. In addition, include two other costconsiderations and explain their inclusion in your capital budgetplan. For example, if you are installing an Electronic MedicalRecords (EMR), you must include future cost for maintenance,software updates, new computers, etc. These are the hidden costs ofoperation often not considered in a capital budget.