CAS-12: Repairs and Maintenance Cost

• What repairs and maintenance cost includes (§§4.8, 5.1, 5.2)
• A repair or an improvement? (§5.7)
• Outside work, overhauls and recoveries (§§5.3, 5.4, 5.9, 5.16)
• Unusual events, assigning and showing the cost (§§5.14, 6, 7)

Chapters

1. Kumar keeps the machines running · What it costs to keep machines working, and when a “repair” is really an upgrade (§§4.8, 5.1, 5.2, 5.6, 5.7)
2. Outside repairs and the big overhaul · Price outside work fairly and spread a big overhaul over the years it serves (§§5.3, 5.4, 5.9, 5.10, 5.16)
3. After the storm · Keep repairs from unusual events out, and send repairs to the work they served (§§5.14, 6.1–6.3, 7)
4. Spot the mistakes in Kumar’s cost sheet · Use everything from this lesson (§§5.7, 5.9, 5.10, 5.14, 5.15)

Key terms

• Repairs and maintenance cost (§§4.8, 5.1, 5.2, 5.6, 5.7): The cost of keeping or putting back a machine so it works as intended. Your own team’s work costs the materials, spares, people, equipment and power used. Spares count as repairs only if they do not make the machine better than before.
• Outside repairs and overhauls (§§5.3, 5.4, 5.9, 5.10, 5.16): Work at the contractor’s shop costs the agreed price, without tax you get back. Work on your premises also counts what you supplied. A big overhaul is spread over the period it serves. Interest stays out. Insurance and other money recovered is taken off.
• Assigning and showing repairs cost (§§5.14, 6.1–6.3, 7, 8): Repairs from unusual events like fire or flood stay out. Trace repairs to the department that used them where you can; share the rest as overheads (CAS-3). Show repairs as their own line, with details by asset and activity.