what is fixed capital
Answers
Answer:
In economics and accounting, fixed capital is any kind of real, physical asset that is used repeatedly in the production of a product. It contrasts with circulating capital such as raw materials, operating expenses and the like. It was first theoretically analyzed in some depth by the economist David Ricardo.
Explanation:
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Answer:
Fixed capital is the portion of total capital outlay of a business invested in physical assets such as factories, vehicles, and machinery that stay in the business almost permanently, or, more technically, for more than one accounting period.
or
Those materials which can be used in production over many years are called FIXED CAPITAL . ... this means raw materials and money in hand, Production requires a variety of raw materials such as the yarn is used by the weaver and clay used by the potter.
EXAMPLE
In national accounts, fixed capital is conventionally defined as the stock of tangible, durable fixed assets owned or used by resident enterprises for more than one year. This includes plant, machinery, vehicles and equipment, installations and physical infrastructures, the value of land improvements, and buildings.
Explanation:
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