# Consumption of fixed capital definition

Consumption of fixed capital expenditure means an outlay for the acquisition of or improvements to fixed assets;

## Examples of Consumption of fixed capital in a sentence

Consumption of fixed capital is not generally observable and is usually estimated on the assumption that asset prices decline in a systematic way over the course of the asset’s service life.

Consumption of fixed capital is calculated by the Investment and Capital Stock Division (ICSD) of Statistics Canada using current market prices of fixed assets and estimates are published using both linear and geometric methods.

We initiate PIM by taking 2011 stocks for asset types from ii until iv.23 Consumption of fixed capital for each type of fixed asset is estimated by multiplying the inverse of the expected service life by the gross fixed capital stock (assuming thus straight-line depreciation profile).

These costs (with 1993 SNA codes in brackets) are:  Intermediate consumption (P2). Other taxes on production (D29). Consumption of fixed capital (K1). Real net operating surplus (B2).

Consumption of fixed capital (CFC) is obtained by multiplying the mid-year value of the net capital stock by the depreciation rate.

Consumption of fixed capital is an item that may or may not be carried on through the accounts, and we may safely leaving it aside as an optional way of expressing anyone of the variables in question.

Consumption of fixed capital (CFC) is published for National Income and Product Accounts (NIPA), as noted above in item # 7, only by legal form of organisation, such as corporate business, non-financial corporate business, farms, non-farm housing, government, etc., but not by industry.

Consumption of fixed capital can be estimated indirectly by using age-efficiency profiles to obtain the age-price profiles for different types of assets and obtaining consumption of fixed capital as the difference between successive asset values.

UC 09: Consumption of fixed capital on the stock of owner-occupied dwellings is measured at current prices and is sometimes called depreciation at current replacement cost.

It notes: A Consumption of fixed capital is a cost of production.

## Related to Consumption of fixed capital

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