What are items consumed in normal business operations called?

Study for the NAB Domain 2 Operations Test. Use flashcards and multiple choice questions, with hints and explanations. Get exam ready!

Items consumed in normal business operations are referred to as supplies. Supplies represent the materials or components that are utilized to conduct everyday business activities. These can include office supplies, cleaning materials, or any other consumables necessary for the functioning of the organization.

In contrast, equipment typically refers to durable goods used in the operational processes but not consumed as part of the daily operations, such as computers or machinery. Assets encompass all resources owned by a business that hold value, which includes both tangible and intangible items. Capital goods are a specific subset of assets that are used to produce goods and services, such as buildings and heavy machinery, but are not consumed in the same manner as supplies. Thus, "supplies" is the most accurate term for everyday consumables used in normal business operations.

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