Capital Consumption Allowance - CCA

Capital consumption allowance is all about how much a country has to spend each and every year to keep up with its current rate of economic production (cuz, yes, production costs mula!). It's actually calculated as a percentage of the country's gross domestic product (because this is finance, and finance is ALL about abbreviations, this concept is better known as "GDP").

GDP is a broad measure of a country's economic output. So, capital consumption allowance is presented as a percentage of the total output of the economy.