The decision of whether to capitalize or expense an amount spent on a PP&E item after its original purchase is based on the cost of the item.

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The decision to capitalize or expense an amount spent on a PP&E (Property, Plant, and Equipment) item after its original purchase is based on whether the expenditure provides future economic benefits beyond the originally assessed standard of performance. This includes extending the asset's useful life, enhancing its capacity, or improving its efficiency, not merely the cost of the item.

The Decision of Whether to Capitalize or Expense an Amount