Overhaul reflects costs necessary to keep a machine functional throughout its economic life: the periodic rebuilding of engines, transmissions, undercarriages, hydraulic pumps, cylinders and other major components. For EquipmentWatch Cost Recovery and Internal Charge Rates, this item does not include complete overhauls and remanufacturing, the type of which is done to extend the economic life of the equipment. These types of overhaul and remanufacturing costs should be treated as capital expenditures, and depreciated over a newly established economic life.

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