Capital Expenditures (CapEx) refer to funds used by an organization to acquire or upgrade physical assets such as property, industrial buildings, or equipment. Purchasing vehicles falls under CapEx as it involves acquiring a long-term asset.
In the context of the CompTIA Project+ PK0-005 exam, understanding the distinction between CapEx and operational expenditures (OpEx) is important, as highlighted in Domain 4.2: Compare and contrast common project team organizational structures.