InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
What Is 'fixed Capital'? |
|
Answer» Fixed capital includes the assets and capital INVESTMENTS that are needed to start up and conduct business, even at a MINIMAL stage. These assets are CONSIDERED fixed in that they are not consumed or destroyed during the actual production of a good or service but have a reusable value. Fixed-capital investments are typically depreciated on the company's ACCOUNTING statements over a long period of time, up to 20 years or more. Fixed capital includes the assets and capital investments that are needed to start up and conduct business, even at a minimal stage. These assets are considered fixed in that they are not consumed or destroyed during the actual production of a good or service but have a reusable value. Fixed-capital investments are typically depreciated on the company's accounting statements over a long period of time, up to 20 years or more. |
|