Fundamental difference between CTF and CSF is CTF is applied to a capital asset's first cost while CSF is applied to the asset's operating costs CTF is applied to the first cost of a capital asset while CSF is applied to the asset's salvage value CTF is applied to a salvage value of a capital asset while CSF is applied to the asset's first cost Both are applied to a capital asset's first cost depending on the time of the asset's purchase CTF is applied to a projec's benefits while CST is applied to the project's costs