Glossary Terms

Equipment field repair is a segment of operating cost defined as routine, daily servicing of the equipment and would include repairing, replacing or adjusting small components such as pumps, [...]

Overhaul parts costs are accrued for each machine working-hour to offset costs incurred for periodic replacing, rebuilding and reconditioning of major components, such as engines, transmission, [...]

Overhaul labor is accrued for each machine working-hour to offset charges incurred to replace, rebuild and recondition major components and are to be included whether repair is performed in the [...]

Overhaul reflects costs necessary to keep a machine functional throughout its economic life: the periodic rebuilding of engines, transmissions, undercarriages, hydraulic pumps, cylinders and [...]

Resale value is the current fair market value of a piece of equipment expressed in total dollars.

The list price represents the manufacturer suggested price for a complete working machine F.O.B. factory.

Freight refers to the transportation cost from factory to Owner's yard in total dollars.

Sales tax refers to a compulsory contribution to state revenue imposed by the government a the point of sale on goods and services.

Discount refers to the percent off from list price experienced by the equipment buyer. Including discount as an ownership factor will result in more accurate internal charge rate calculation.

Annual Use Hours are the average number of hours per year that a machine performs work as determined by surveying equipment owners.