State whether it is fixed capital or circulating capital. (i) Machines (ii) Raw material

Question

A list of goods are given below. 

State whether it is fixed capital or circulating capital.

(i) Machines

(ii) Raw material

(iii) Fuel

(iv) Office furniture

Answer 1

(i) Machines – Fixed capital 

(ii) Raw material – Circulating capital 

(iii) Fuel – Circulating capital 

(iv) Office furniture – Fixed capital