What category do special tooling assets fall under?

Special tooling assets fall under the category of tangible assets because they are physical items that have a specific use in production or manufacturing processes. Tangible assets are characterized by their physical presence and the ability to be touched or measured.

Special tooling refers to equipment or tools that are used for specific production tasks, often customized to enhance manufacturing processes. These items have measurable value and can be physically observed and assessed, distinguishing them from intangible assets, which may include non-physical items like patents or trademarks, or current assets, typically referring to cash or assets expected to be liquidated within a year. Real assets generally pertain to land and buildings.

The categorization of special tooling as tangible emphasizes its role in contributing to production capabilities and the direct impact it has on the overall asset valuation within a business context.