Certified Facility Manager (CFM) Practice Exam

Which of the following is considered a non-CapEx item?

1. Construction improvement costs

2. Telecommunication truck line charges

3. Building renovation expenses

4. Roof replacement costs

The correct answer is: Telecommunication truck line charges

In facility management, distinguishing between capital expenditures (CapEx) and non-capital expenditures (non-CapEx) is crucial for financial analysis and budgeting. Non-CapEx items typically refer to ongoing operational costs that do not significantly improve or extend the life of an asset. Telecommunication truck line charges are categorized as non-CapEx because these expenses are associated with the day-to-day operations and services provided by telecommunications, rather than contributing directly to the value or useful life of the facility itself. These charges are generally considered part of the normal operational expenses that keep systems running and are charged in the period they incur. On the other hand, construction improvement costs, building renovation expenses, and roof replacement costs represent investments in the facility that are expected to enhance its value or extend its operational utility, thus classified as CapEx. The distinction lies in the nature of the costs; while they all relate to the functionality of the building, non-CapEx items focus more on operational continuity rather than building asset enhancement.