which of the following is not a fixed capital
Answers
Answer:
Fertilizers aren't fixed capital
Answer:
Raw materials are not fixed capital.
Explanation:
The term "fixed capital" does not apply to raw materials. Assets that may be employed again and are not consumed or destroyed during the creation of a good or service are referred to as fixed capital. When a business invests in long-term assets, it does so with fixed capital. Its character endures forever and is preserved in both the company's intangible and tangible assets. Cash on hand and raw supplies are examples of working capital. The single-use manufactured commodities like raw materials are referred to as working capital or variable capital. They only ever see direct use during production. They are transformed into completed commodities.
Thus, fixed capital is defined as cash on hand and raw commodities. Unlike equipment, machinery, and structures, these are depleted throughout manufacturing.