Final answer:
The cost of a company's new building under construction is an investment in a tangible fixed asset and is recorded on the balance sheet as property, plant, and equipment (PP&E). Surveys by the Census Bureau on construction and physical capital equipment expenditures help track investment trends in such assets.
Step-by-step explanation:
The cost of a new building that is under construction for a company's own use is considered a capital expenditure and is reported on the company's balance sheet as an asset. This building would be classified as property, plant, and equipment (PP&E), which is a type of tangible fixed asset.
When the company invests in such assets, it is not for immediate resale but rather for the purpose of furthering the company's business operations.
The Census Bureau's monthly survey of construction and the annual survey of expenditures on physical capital equipment are relevant because they provide data on investment trends in the construction industry and in capital expenditure as a whole, respectively.
These surveys offer insights into the economic activity related to building new structures—and by extension, the increase in value of a company's assets through capital investments like the construction of a new building for own use.