Final answer:
The statement is False. Consumable contracts are not used for capital investment equipment, which requires justification and funding.
Step-by-step explanation:
The statement 'consumable contracts can be used to avoid justifying and funding capital investment equipment' is False. Consumable contracts are typically used for short-term and recurring supplies or services, such as office supplies or maintenance contracts. They are not intended for capital investments, which usually involve large-scale and long-term assets like machinery or vehicles. Capital investments often require justification and funding through methods such as obtaining loans, issuing shares, or using retained earnings.