capital equipment

Big business purchases

Capital equipment refers to major physical assets a business uses to produce goods or services—machinery, vehicles, computers, buildings.

Unlike supplies or inventory, capital equipment is durable and not consumed in production.

It typically appears on balance sheets as a fixed asset and depreciates over time.

The factory invested in new capital equipment to increase output.

asset

depreciation

Asset value reduction over time

fixed assets · valuation · acquisition · collateral · equity · write-off · salvage value · useful life · impairment · tangible assets

manufacturing

factory

Industrial production facility

fabrication · tooling · production line · quality control · calibration · workshop · precision · components · mass production · prototyping

machinery

excavator

Machine that digs earth

lathe · drill press · milling machine · backhoe · loader · compactor · conveyor · tractor · combine harvester · generator

durability

longevity

Duration of existence

serviceability · heavy-duty · robust · endurance · hard-wearing · resilient · sturdy · overhaul · refurbishment · downtime

investment

ROI

Profit-to-cost ratio

procurement · budgeting · cost-benefit analysis · funding · purchase order · hurdle rate · cash flow · tax incentive

Opposites
durability and consumption

capital equipmentconsumables

Items requiring regular replacement

perishable goods · raw materials · office supplies · fuel · lubricants

asset classification

capital equipmentcurrent assets

Resources convertible within a year

liquid assets · working capital · intangible assets · operating expenses · inventory

expenditure type

capital equipmentoperating expenses

Routine business costs

overhead · labor costs · utilities · rent · service contracts

Family

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Familiarity
Top 50,000
Profile
Used worldwide · Timeless · Concrete · Rated G