And the cost of the camera's losing its value is called depreciation.
It's the cost of doing business with that tool.
By the way, I like the "$100 walk away option", oh and plus the $195
documentation fee.
But the approximately 15% interest on the hire purchase seems quite
reasonable. Actually, I think it's less than that but I haven't
worked it out per payment.
But, as you write later, Moose, it is a dreadful waste just to dump
equipment like that. We have a Smart Board at work which was bought
to fill a budget underspend (i.e. in a hurry) and it has turned out to
be waste dosh, albeit only around GBP5,000 ...
Chris
On 21 Aug 2008, at 19:35, Moose wrote:
> With any luck, they have more than paid for themselves and the
> operating
> and maintenance costs. From an accounting standpoint, they have been
> depreciated. Again, with competent management, the life for book
> depreciation purposes (which may vary from tax) has approximated
> actual
> useful life, and it is sold or dumped with little effect on the books.
>
> Obsolescence for a business is based on the ability to get the job
> done,
> not what's latest. So many pieces of equipment in many businesses are
> productive long after they are out-dated and written off. Some can be
> extraordinarily profitable at that point.
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