Consumption of fixed capital (CFC)

What is Consumption of fixed capital (CFC)?

Consumption of fixed capital (CFC) meaning The charge for the using up of private and government fixed capital located in the United States. It is the decline in the value of the stock of fixed assets due to wear and tear, obsolescence, accidental damage, and aging. For general government and for nonprofit institutions that primarily serve individuals, CFC serves as a measure of the value of the current services of the fixed assets owned and used by these entities. Related terms: capital consumption adjustment (CCAdj), capital consumption allowance (CCA).


reference: BEA Bureau of Economic Analysis. US Department of Commerce