Which of the following is considered fixed capital?

The correct choice, buildings and equipment directly used in production, is considered fixed capital because it represents long-term investments that support the production process. Fixed capital typically includes assets that provide value over an extended period and are essential for the ongoing operations of a business. These assets are not consumed or sold in the regular course of business but instead contribute to production capacity and efficiency.

Raw materials held in inventory are classified as current assets since they are intended for future consumption or sale in the production process. Day-to-day operational costs represent variable expenses necessary for everyday business functions, rather than long-term investments. Investments in employee training, while valuable, are generally treated as short-term investments in human capital rather than fixed assets, as they do not represent tangible physical assets used in production.