Industries are related to the raising, producing, processing or manufacturing of products. The industrial products can be classified into following:
Major Equipment’s This category includes large machines or other tools whose net purchase price are so great that expenditures for them are changed to capital account and not the current account. Major equipment is of two types:
- Multipurpose or standard machines which can be used by a no. of different industries or by many firms in the same industry.
- Single purpose machines are designed to perform one particular operation and no other.
Since the net price of major equipment is sometimes very high, its purchase may involve financial problem for the buyer.… Read the rest