Equipment Management:
Management involves making informed judgments about equipment's acquisition and financing, establishing a comprehensive preventive maintenance program, managing accurate and current records of equipment income, expenses, and usage, and establishing an appropriate company policy concerning equipment replacement.
Equipment Depreciation:
Business property steadily declines in value because of age, wear and obsolescence. This reduction in value is called depreciation. Depreciation charges for equipment-oriented contractors account for an appreciable portion of their annual operation expense. Basically depreciation systematically reduces the value of a piece of equipment on an annual basis. The sum of these reductions at any time is depreciation reserve which, when subtracted from the initial cost of equipment, gives its current book value.
Management involves making informed judgments about equipment's acquisition and financing, establishing a comprehensive preventive maintenance program, managing accurate and current records of equipment income, expenses, and usage, and establishing an appropriate company policy concerning equipment replacement.
Equipment Depreciation:
Business property steadily declines in value because of age, wear and obsolescence. This reduction in value is called depreciation. Depreciation charges for equipment-oriented contractors account for an appreciable portion of their annual operation expense. Basically depreciation systematically reduces the value of a piece of equipment on an annual basis. The sum of these reductions at any time is depreciation reserve which, when subtracted from the initial cost of equipment, gives its current book value.
