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 value reduction over time
- amortizationGradual debt reduction schedule
- balance sheetAssets-liabilities-equity report
- book valueAsset minus accumulated depreciation
- fixed assetsLasting business property
valuation · acquisition · collateral · equity · write-off · salvage value · useful life · impairment
Industrial production facility
- automationSelf-operating system design
- roboticsAutomaton design field
- assembly lineSequential workstation manufacturing
- fabricationDeliberately untrue statement
tooling · production line · quality control · calibration · workshop · precision · components · mass production
Machine that digs earth
- bulldozerBladed vehicle pushing earth
- craneLifter or wader
- forkliftPowered pallet-hoisting vehicle
- latheRotating shaping machine
drill press · milling machine · backhoe · loader · compactor · conveyor · tractor · combine harvester
Duration of existence
- lifespanTotal existence duration
- reliabilityConsistent, predictable performance
- maintainabilityEase of ongoing repair
- serviceabilityCapacity for practical use
heavy-duty · robust · endurance · hard-wearing · resilient · sturdy · overhaul · refurbishment
Profit-to-cost ratio
- payback periodDuration until costs recovered
- financingProviding capital for purchases
- leasingContractual temporary use
- procurementObtaining goods externally
budgeting · cost-benefit analysis · funding · purchase order · hurdle rate · cash flow · tax incentive
depreciation
Asset value reduction over time
- amortizationGradual debt reduction schedule
- balance sheetAssets-liabilities-equity report
- book valueAsset minus accumulated depreciation
fixed assets · valuation · acquisition · collateral · equity · write-off · salvage value · useful life · impairment · tangible assets
factory
Industrial production facility
- automationSelf-operating system design
- roboticsAutomaton design field
- assembly lineSequential workstation manufacturing
fabrication · tooling · production line · quality control · calibration · workshop · precision · components · mass production · prototyping
excavator
Machine that digs earth
lathe · drill press · milling machine · backhoe · loader · compactor · conveyor · tractor · combine harvester · generator
longevity
Duration of existence
- lifespanTotal existence duration
- reliabilityConsistent, predictable performance
- maintainabilityEase of ongoing repair
serviceability · heavy-duty · robust · endurance · hard-wearing · resilient · sturdy · overhaul · refurbishment · downtime
ROI
Profit-to-cost ratio
- payback periodDuration until costs recovered
- financingProviding capital for purchases
- leasingContractual temporary use
procurement · budgeting · cost-benefit analysis · funding · purchase order · hurdle rate · cash flow · tax incentive
capital equipmentconsumables
Items requiring regular replacement
perishable goods · raw materials · office supplies · fuel · lubricants
capital equipmentcurrent assets
Resources convertible within a year
liquid assets · working capital · intangible assets · operating expenses · inventory
capital equipmentoperating expenses
Routine business costs
overhead · labor costs · utilities · rent · service contracts
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