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:

  • batteries
  • computer cables
  • calculators
  • envelopes
  • 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.

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