Meaning And Features Of Accessory Equipment

Accessory equipment needs to be used in the production process in any business firm. But it does not have any important effect on operational level. The accessory equipment does not include in real part of finished goods. Accessories have shorter life than installations.

Besides installations, small accessories also have important place in production process. Handhold tools, small machines, forklift truck, hammer, wrench, lever etc. make production function easy and fast. Such tools are not costly and do not last long. No consent of high-level management is necessary to buy such accessories. Staff of concerned department can purchase them when needed.

It becomes difficult to reach conclusion of marketing accessories produced by any business firm. In some situation, they are sold directly to users and in some other situations indirectly through middlemen. If the business firm has received purchase order for large quantity of different units or per unit cost of such accessories is relatively high, producer sells them directly to business users. The firm, which manufactures forklift truck, can sell it directly to users, because its per unit cost is high. The manufacturing firm wants to make distribution policy profitable. But, if the market is geographically scattered, potential customers are of different types and personal orders are for small quantity, the manufacturers use middlemen to sell accessory equipment.

Features Of Accessory Equipment

1. Unit Price
Per unit price of accessory equipment is neither high nor low, it is moderate.

2. Life Span
Life span of accessory equipment is shorter than of installations.

3. Purchase Frequency
Purchase frequency of accessory equipment is moderate.

4. Purchase Quantity
Accessory equipment are bought in small quantity.

No comments:

Post a Comment