What is the term used to refer to replacing older parts with newer better parts?

1. What is repair and replacement?
2. Should I replace certain equipment?
3. When should you replace and repair?
4. What do you mean by Group replacement?
5. Which method is used for selection of replacement?
6. What is equipment replacement?
7. When should you replace appliances?
8. When should you replace a car?
9. When should you stop putting money in a car?
10. What is Group replacement theory?
11. What is individual replacement?
12. What do you mean by individual replacement?
13. What is replacement method?
14. What is replacement value method?
15. Which method is also known as replacement cost method?

What is repair and replacement?

1 to restore (something damaged or broken) to good condition or working order.

Should I replace certain equipment?

If the total spent on repairs is more than 50% the price of a new piece of equipment, replacing is probably the best option. It is sometimes worth cutting your losses and paying a bit more in the short-term to free yourself from an old machine's maintenance costs.

When should you replace and repair?

If an appliance is more than 50% through its lifespan, and if the cost of one repair is more than 50% of the cost of buying new, then you should replace rather than repair. To do the math, you'll have to know the typical lifespan (see above), and get a repair estimate.

What do you mean by Group replacement?

a PREVENTIVE MAINTENANCE system which replaces groups of items such as lightbulbs at predetermined intervals, even though they may not all have come to the end of their life.

Which method is used for selection of replacement?

Following are some of the important methods which are used for equipment replacement studies: 1. Pay-Back Period Method 2. Total Life Average Method 3. Annual Cost Method 4.

What is equipment replacement?

The customary approach to the equipment replacement problem emphasizes the physical deterioration of the existing equipment. The main concept is to replace the equipment when the cost of operating and maintaining it become sufficiently high, in net expected present value terms, to substantiate a replacement.

When should you replace appliances?

While there's no universal lifespan for every major appliance in your home, most will last anywhere between 10 – 15 years. Even with the best maintenance, most appliances won't function properly past their lifespan, and if you start to notice your appliance acting up, it might be time to replace it.

When should you replace a car?

A good rule of thumb is to employ the so-called “50-percent rule.” When repairs cost 50 percent of what your car is worth, it's time to replace. Know what your next car will cost.

When should you stop putting money in a car?

When repair costs start to exceed the vehicle's value or one year's worth of monthly payments on a replacement, it's time to break up with your car, according to automotive site Edmunds and Consumer Reports, the product review site.

What is Group replacement theory?

Group Replacement Theory

Replacement of items that fail suddenly. There are certain items which do not deteriorate but fail completely after certain amount of use. These kinds of failures are analyzed by the method called as group replacement theory.

What is individual replacement?

Two types of replacement policies are considered when dealing with such situations : (a) Individual replacement policy – Under the individual replacement policy, an item is replaced immediately after its failure.

What do you mean by individual replacement?

Answer: Explanation: Individual replacement policy. In this policy a particular time 't' is fixed to replace the item whether it has failed or not. It can be done when one knows that an item has been in service for a particular period of time and has been used for that time period.

What is replacement method?

replacement method of depreciation. method in which the current depreciation expense amount, usually determined by the straight-line depreciation method, is augmented by a percentage derived from a comparison of the anticipated replacement cost of a depreciable asset with its original cost.

What is replacement value method?

Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. It equals the cost of replacing the property.

Which method is also known as replacement cost method?

The practice of calculating a replacement cost is known as "replacement valuation." Replacing an asset can be an expensive decision, and companies analyze the net present value (NPV) of the future cash inflows and outflows to make purchasing decisions.