Betterment

AAA

DEFINITION of 'Betterment'

A type of action or cost expenditure that contributes towards improving an asset's performance and/or increasing its value. Betterments do not include general maintenance-related actions that seek to sustain an asset's current value.

INVESTOPEDIA EXPLAINS 'Betterment'

For example, fixing a garage door would not be betterment, but adding an automatic garage-door opener to the garage would be, because the new door will add value to the home.

An example of betterment in business would be replacing an outdated piece of equipment with a new piece that increases a manufacturing facility's production capacity. In this case, the overall asset's value (the manufacturing facility) is greater than its value would have been had it kept the old equipment.

RELATED TERMS
  1. Betterment Insurance

    Betterment insurance refers to insurance coverage that a tenant ...
  2. Assessed Value

    The dollar value assigned to a property for purposes of measuring ...
  3. Property

    1. Anything over which a person or business has legal title. ...
  4. Capital Improvement

    The addition of a permanent structural improvement or the restoration ...
  5. Hard Asset

    A tangible and physical item or object of worth that is owned ...
  6. Tangible Cost

    A quantifiable cost related to an identifiable source or asset. ...
Related Articles
  1. Can You Count On Goodwill?
    Personal Finance

    Can You Count On Goodwill?

  2. Avoid Capital Gains Tax On Your Home ...
    Taxes

    Avoid Capital Gains Tax On Your Home ...

  3. Do You Need A Home Inspection?
    Home & Auto

    Do You Need A Home Inspection?

  4. Advertising, Crocodiles And Moats
    Professionals

    Advertising, Crocodiles And Moats

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center