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Depreciation can be calculated several ways, the simplest is the straight-line method. The annual depreciation is constant, reducing the equipment value annually. For an expense to be classified as an operating cost, it must be incurred through use of the equipment. These costs are as follows: . The biggest distinction from a cost standpoint is if a repair is classified as a major repair or a minor repair. A major repair can change the depreciable equipment value due to an extension in service life , while a minor repair is normal maintenance.
How a firm chooses to cost major and minor repairs vary from firm to firm depending on the costing strategies being used.
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Some firms will charge only major repairs to the equipment while minor repairs are costed to a project. Another common costing strategy is to cost all repairs to the equipment and only frequently replaced wear items are excluded from the equipment cost.
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Many firms keep their costing structure closely guarded [ citation needed ] as it can impact the bidding strategies of their competition. In a company with multiple semi-independent divisions, the equipment department often wants to classify all repairs as "minor" and charge the work to a job - therefore improving their 'profit' from the equipment.
Die-cast metal promotional scale models of heavy equipment are often produced for each vehicle to give to prospective customers. These are typically in scale. The largest 10 construction equipment manufacturers in based on revenue data of top 50 manufacturers published by KHL Group . From Wikipedia, the free encyclopedia. Vehicles designed for executing construction tasks.
For other uses, see Heavy machinery disambiguation. Further information: Equipment. Further information: History of construction and History of steam road vehicles.
JCB 3CX backhoe loader. A wheeled bulldozer in an open pit coal mine. Wheel loader. Grader plowing snow here. Landfill compactor tamping tip. Reconditioned Caterpillar G Soil Compactor. Military scraper. Main articles: Off-the-road tire and Caterpillar track. Main article: Heavy equipment operator.
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Main article: Model construction vehicle. Tatum et al. Journal of Construction Engineering and Management. Davies, Ken Tomasin Construction Safety Handbook. Thomas Telford. International Construction April page 14". Forestry tools and equipment.
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