What are fixed assets primarily used for?

Fixed assets are primarily used for the operation of an organization. These assets, which include property, plant, and equipment, are essential for the ongoing activities of a business. They are not intended for resale in the short-term and typically have a long-term useful life, helping the organization to produce goods or provide services necessary for its operations.

Utilizing fixed assets allows companies to efficiently manage their production processes, ensure operational capacity, and sustain business functions over time. For example, manufacturing equipment is crucial for creating products, while buildings provide the necessary space to operate. As such, the primary role of fixed assets is to support the core operations of a business rather than to generate short-term profits, invest financially in other businesses, or conduct research activities.