Capital Equipment
Assets used long-term in business operations: machinery, vehicles, buildings, computers.
Real World
Amazon's fulfilment centres are packed with capital equipment — conveyors, robotic pickers, and forklift trucks — purchased or leased to increase throughput capacity and reduce unit fulfilment costs.
Exam Focus
Distinguish capital expenditure (long-term assets) from revenue expenditure (day-to-day costs); confusing the two is a common exam error.
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