What is a consumable item?
Definition of a consumable item
A consumable item is a term for a small everyday item in accounting.
Consumable items would be posted as a day-to-day running cost of your business, so they reduce its profit in the profit and loss account.
Examples of consumable items:
- computer cables
- whiteboard markers
- printer paper
Frequently Asked Questions
What is the difference between a consumable item and a capital asset?
A capital asset is more expensive than a consumable item, and isn’t something you would buy every day in your business. It would also be useful to your business for 2 years or more. So if you buy a computer and, separately, some batteries to power it, the computer would be a capital asset, the batteries would be consumable items.
Got questions? Ask Emily!
FreeAgent's Chief Accountant Emily Coltman is available to answer your questions in the comments.