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Figure 5.7: Capital items
Capital items
I Installations - includes big acquisitions such as
structures (factories, offices) and fixed equipment
that aid in the buyer's production or operations
(generators, drill presses, large computer systems,
elevators)
ii) Accessory equipment – portable production
tools and equipment (hand tools, lift trucks) as
well as office equipment (computers, fax
machines, desks)
They have a shorter lifespan than installations and
are only used to assist in the manufacturing
process.
Figure 5.8: Supplies and services
3. Supplies and services
Supplies include lubricants, coal, paper, and
pencils, as well as repair and maintenance goods
(paint, nails, brooms)
Supplies are industrial convenience products
since they are typically acquired with little effort
or comparison.
Maintenance and repair services (window
cleaning, computer repair) are examples of
business services, as are business advising
services (legal, management consulting,
advertising)
Such services are available. are usually supplied
under contract.
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