Betterment

Improvement expenditures that improve or increase the service capabilities of an asset even beyond its original new condition; These costs can be capitalized by increasing the cost of the asset

Betterment refers to expenditures that improve an asset’s capacity or extend its useful life beyond its original condition. Such costs are generally capitalized (added to the asset cost) when criteria are met.

- Used in planning, organizing, and controlling business operations.
- Used when setting KPIs, policies, procedures, and improving processes.

- Example: Management applies **Betterment** when designing policies and monitoring performance against targets.

- Why it matters: Improves execution, accountability, and decision speed while reducing operational waste.