Business suppliers may face almost pure competition. An expense item is deducted in the year it is bought. Installations are important capital items. One of a kind installations such as office buildings and custom-made equipment require special negotiations for each sale. Accessories are short-lived capital items such as tools and production equipment.
Raw materials are unprocessed expense items.
They become a physical part of the goods the firm makes. Farm products are grown or raised by farmers. Natural products are those that occur in nature, such as wood and mineral ores. Component Parts and Materials. Components are processed expense items that become part of a finished product.