Total cost of repair and maintenance per $1,000 gross value of fixed assets

This measure calculates the total cost of repair and maintenance (i.e. the amount spent to maintain the fixed asset base in a productive capacity) per $1,000 gross value of fixed assets. A fixed asset is a long-term asset (e.g., property, plant, or equipment) not purchased or sold in the normal course of business but instead used by the company to generate revenue. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the "perform fixed-asset accounting" process.

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure Id:
103518
Total Sample Size:
461 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are dollars.

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Cost to repair and maintain fixed assets / (Gross value of fixed assets * 0.0010)

Key Terms

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Process Cost Components

Total cost for a process, process group, or function consists of the following five components.

Internal/In-house operating cost consists of the first four components (personnel, systems, overhead, and other).

Personnel Cost

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

Systems Cost

Systems costs include all expenses, paid or incurred, in conjunction with:
Computer hardware or computer software acquired by the organization or provided to the organization through service contracts.

Any related costs to process, service and maintain computer hardware or computer software. The costs of providing and maintaining services for each applicable process (e.g., computer system(s) processing (CPU) time, network/system communication charges, maintenance costs for applications and data storage). This includes the costs related to LANs, WANs, etc. This does not include one-time costs for major new systems developments/replacements. Consultant fees should not be included in depreciation of new system implementations. Include only those costs that occur more than six (6) months after implementation, as normal system maintenance costs. Any systems cost (e.g., maintenance) which is outsourced to a third party supplier should be captured in the separate cost category labeled outsourced cost.

Systems cost should include all salaries, overtime, employee benefits, bonuses or fees paid to full-time, part-time or temporary employees or independent contractors who perform services relating to computer hardware, computer software, processing or systems support.

Overhead Costs

For the purpose of this study, provide the total actual overhead costs for the year related to the specified process. These are costs that cannot be identified as a direct cost of providing a product or a service. Include the primary allocated costs such as occupancy, facilities, utilities, maintenance costs, and other major costs allocated to the consuming departments. Exclude systems costs that are allocated, since these will be captured separately as systems cost.

Other Cost

Other costs are costs associated with the specified process, but not specifically covered in personnel cost, systems cost, overhead cost and outsourced cost in this questionnaire. These other costs include costs for supplies and office equipment, travel, training and seminars. Include the cost of telephones, except for that portion captured in systems cost.

External/Outsourced Cost

In determining outsourced cost, include the total cost of outsourcing all aspects of the specified process to a third-party supplier. Exclude one-time charges for any type of restructuring or reorganization. Outsourced costs should also include costs for intracompany outsourcing (i.e., reliance on a shared services center or other business entity).

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

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Cross Industry (7.3.0)

  • 9.3.3.1 - Establish fixed-asset policies and procedures (10828) - Creating rules for fixed assets market valuation. Make rules and regulations for fixed assets regarding depreciation, provisions, resale, usage, etc.
  • 9.3.3.2 - Maintain fixed-asset master data files (10829) - Keeping reports up-to-date regarding fixed assets. Create a fixed assets database detailing price, life cycle, depreciation rate, resale value, installation information, usage information, etc.
  • 9.3.3.3 - Process and record fixed-asset additions and retires (10830) - Keeping a summary of sales and purchases of assets. Record any expenses made for new assets purchased and sales of any old assets during the fiscal year.
  • 9.3.3.4 - Process and record fixed-asset adjustments, enhancements, revaluations, and transfers (10831) - Keeping a summary of expenses for installing and modifying assets. Record any expenses made for new assets purchased, any expenses incurred on improvements, the valuation of assets to reach current market price, and any transfer assets from one location to another during the fiscal year.
  • 9.3.3.5 - Process and record fixed-asset maintenance and repair expenses (10832) - Maintaining a record of expenses necessitated for repairs and the preservation of assets. Administer and oversee the maintenance and repair of any fixed assets. Record all related transactions.
  • 9.3.3.6 - Calculate and record depreciation expense (10833) - Carrying out accounting for depreciation over fixed assets. Compute the sums necessitated. Maintain a record of the cost value of fixed assets over their useful life in the book of accounts.
  • 9.3.3.7 - Reconcile fixed-asset ledger (10834) - Balancing the ledger account balance for fixed assets. Correct errors in the books of fixed assets. Provide correct information in relevant accounts.
  • 9.3.3.8 - Track fixed-assets including physical inventory (10835) - Checking and updating the record of all raw materials and fixed assets. Track all fixes asset. Maintain a record of all inventory items.
  • 9.3.3.9 - Provide fixed-asset data to support tax, statutory, and regulatory reporting (10836) - Showing market value and related expenses on fixed assets data for taxation. Provide complete information recorded in the books of fixed assets about purchase price, depreciation, installation charges, resale market value etc. for tax and regulatory purposes.