What is the term for attributing costs to an asset (capitalization)?

Capitalization of costs related to an asset is called capitalization. It is an accounting process where expenses associated with the acquisition or creation of an asset are not immediately expensed but are included in the asset's cost and amortized over its useful life.

For example, if a company purchases equipment, the costs of acquisition and installation are capitalized, meaning they are added to the equipment's value on the balance sheet, and then gradually expensed through depreciation, reflecting the wear and tear and obsolescence of the asset.