Physical capital refers to the many inputs needed at each stage of production. Physical capital is mostly utilized by business owners to expand their companies from small to large scale operations. It benefits not only the company, but also the country in which the business or startup was formed and continues. It aids in the maintenance of a company’s financial position.
Some of its examples are cash, real estate, equipment, and inventory.
Physical capital includes the items like raw materials, cash in hand, machinery and buildings, which are tangible manmade commodities used in the manufacturing process.
Final Answer:
Hence, the items that come under physical capital that is required during production are cash in hand, plant and machinery and raw materials.