The Asset is made up of those assets of the company that represent the assets and rights, as well as the application of the funds. Within the Asset, in turn, we differentiate between the Fixed Assets and the Current Assets. The first of these groups all the patrimonial elements whose permanence within the company is greater than the duration of the fiscal year. Current Assets, as its name indicates, is the one that has greater mobility within the company and therefore, its permanence within it is usually less than the exploitation cycle.
When speaking of Fixed Assets and in the determination of their cost, for the calculation of the total cost of the product, it would be necessary to consider a differentiation, within it, based on the contribution to the process of adding value to the final product. In this sense, we can consider the Fixed Asset in a broad sense and in a restrictive sense. In the first case, all the elements that we have grouped under the name of Fixed Assets are collected. In the second consideration, it only reflects the elements of fixed assets that intervene in the production process, not having such consideration those investments, of patrimonial nature, that will not be part of the production, that is, that they will not be incorporated into the cycle of exploitation.