Definition
Capital goods are the instruments of production that make up an organization’s plant and operating capacity.
Capital consumption allowance (CCA) is the sum of depreciation on major capital goods plus capital goods destroyed or damaged plus depreciation on minor capital goods.
Capital intensive refers to a product or an industry in which plant and equipment requirements are large relative to labor.
Capital turnover refers to the number of times total capital investment is divisible into sales; the greater this figure, the smaller the net profit on sales required to meet a given return on investment.
Capital turnover = Net Sales ($) ÷ Working Capital ($)
References
- American Marketing Association, AMA Dictionary.