Capital Equipment Definition
Capital equipment refers to the machines, tools, and vehicles that are used in production. This can include everything from hand tools and assembly line machinery to heavy-duty vehicles and industrial buildings. In order for a company to produce its products, it must have the necessary capital equipment.
The term ‘capital equipment’ can also refer to the financial investments that a company makes in order to acquire this machinery. This can include both the purchase price and the cost of shipping and installation. When a company is considering adding new capital equipment to its production process, it must carefully weigh the benefits and costs of doing so.
