Under the classification of industrial products, elevators bought by…

Under the classification of industrial products, elevators bought by a company for its office building are an example of:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Installations

Option (1) Equipments — Incorrect. Equipments are the other kind of capital items, such as hand tools, personal computers and fax machines.

Option (2) Installations — Correct. Capital items are goods used in the production of finished goods. Among them, installations are items like elevators and mainframe computers.

Option (3) Maintenance and repair items — Incorrect. Maintenance and repair items, like paint and nails, are short lasting supplies. They are not capital items.

Option (4) Component parts — Incorrect. Component parts, like tyres and batteries, enter the manufacturer’s product completely. An elevator in an office does not become part of any product.

NCERT (2026-27 Edition): “Classification The industrial goods are classified into the following major categories:
(i) Materials and Parts: These include goods that enter the manufacture’s products completely. Such goods are of two types: (a) raw material: including farm products like cotton, sugar cane, oil seed and natural products such as minerals (say crude petroleum, iron ore), fish and lumber; and (b) manufactured material and parts. These are again of two types – component materials like glass, iron, plastic and component parts such as tyre, electric bulb, steering, and battery.
(ii) Capital Items: These are such goods that are used in the production of finished goods. These include: (a) installations like elevators, mainframe Computers, and (b) equipments like Hand Tools, Personal Computer, Fax Machines, etc.
(iii) Supplies and Business Services: These are short lasting goods and services that facilitate developing or managing the finished product. These include: (a) maintenance and repair items like Paint, Nails, etc., and (b) operating supplies like Lubricant, Computer Stationary, Writing Paper, etc.”