The consumption of fixed capital in each year's production is called:
A) Indirect business taxes
B) Inventory reduction
C) Depreciation
D) Net investment

Question

Quizplus · Accepted Answer

The consumption of fixed capital is the decrease in the value of fixed assets due to wear and tear, obsolescence, etc. This decrease is accounted for as depreciation in the financial statements of a business. It is not indirect business taxes, inventory reduction or net investment.

The Consumption of Fixed Capital in Each Year's Production Is