Capital Goods

Capital goods are durable and valuable goods that can be used to produce finished goods. They have a long useful life and can be very expensive to purchase. Hence, they are an important part of an enterprise’s overall economic planning. There are many reasons why companies buy capital goods. Capital goods are tangible assets Capital goods are the tangible assets that a business uses to create and sell products. They include machinery, buildings, equipment, and vehicles. A business must have capital goods to operate effectively. Without these items, it cannot…