constant capital的意思|示意

Constant capital, commonly referred to as CC, is an economic term for the funds invested into a business that are meant to remain unchanged in value over a certain period of time. This type of capital may include physical items like tools, machines and buildings, money invested in research and development, and money invested in the personnel required to keep the business running.

In business accounting, constant capital is usually considered to be one of the three components of total capital, with the other two being circulating capital, which fluctuates in value over a certain period of time and is used to conduct operations, and fixed capital, which is used to purchase long-term assets.

In order to calculate the earnings of a company, constant capital needs to be taken into account and accounted for in the cost of goods sold or in the total cost of production. This helps companies determine how much they should be charging customers for their products and services.

Another use of constant capital is to assess the efficiency of a business. This can be done by looking at the total assets of a business and seeing whether they are able to generate sufficient profits to cover the cost of production. If a business is not able to generate enough profit to cover the cost of production, then this might be an indication that the business is not operating as efficiently as it should, and further investment may be necessary to improve operations.

In general, constant capital is a useful economic tool that helps businesses to evaluate their investments more efficiently and understand the impact of their investments on their overall profitability. By properly accounting for this capital and factoring it into their costs, companies can make more informed decisions when it comes to investing and managing their businesses.