What do furniture, fixtures, and equipment represent in capital project costs?

Furniture, fixtures, and equipment (FFE) represent movable equipment costs, which is why this choice is correct. In the context of capital project costs, FFE includes items that are not permanently attached to buildings but are essential for the operation of the facility or project. They encompass various assets such as office furniture, machinery, and technology, which support the functionality of a space or a project's overall operations.

These items are considered capital expenditures because they have a useful life extending beyond one year and are necessary for the production of goods or delivery of services. By classifying these costs as movable equipment, it is clear that they play a significant role in not only the initial investment but also in the ongoing functionality and efficiency of the project.

Understanding this categorization is crucial for effective capital planning and forecasting, as it enables budget planners to appropriately allocate funds for these essential components within their capital projects. This ensures that all necessary equipment and furniture are available for operational readiness upon project completion.