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单词 capital consumption
释义 capital consumption

Loss of value of capital equipment due to use, ageing, or obsolescence. Part of the value of the capital stock owned by an enterprise is lost in any period through wear and tear in use. The passage of time also reduces its expected remaining useful life; and it may become obsolete through advances in technology or changes in factor prices. Capital consumption does not consist of any observable set of market transactions, but has to be estimated. It has to be deducted from the gross profit of a business to obtain net profits, and from the gross domestic product (GDP) of a country to obtain net domestic product.

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更新时间:2024/9/21 11:05:11