What is capitalised costs, and how do they differ between types of companies?

For manufacturing companies, capitalized costs include direct materials, direct labor, and indirect manufacturing costs, hence they are included in WIP and finished stock and ultimately in the COGS account on the P/L statement. For merchandising-sector companies, capitalized costs are the costs of purchasing the products resold in their same form. For service sector companies, the absence of stock means there are no capitalized costs.