Capital Asset
Capital goods are durable goods that companies buy to support their production and make money. These are long-term investments that are not consumed or sold quickly. They contribute to a company's production capacity. Examples of capital goods include machinery, vehicles, buildings, computers and factory equipment.
Capital assets are important because they increase a company's efficiency and productivity. Without these investments, it would be difficult to produce products or services on a large scale. Capital assets are often a large investment and are therefore depreciated over several years in accounting.
Management of capital assets
Capital asset management involves the maintenance and replacement of obsolete or worn-out equipment. This is to ensure that the production process continues to run smoothly. A good capital asset management strategy helps companies reduce operating costs and improve overall profitability.
