The types and significance of the fixed asset maintenance costs in enhancing operational efficiency and financial performance

THE TYPES AND SIGNIFICANCE OF THE FIXED ASSET MAINTENANCE COSTS IN ENHANCING OPERATIONAL EFFICIENCY AND FINANCIAL PERFORMANCE


Supervisor Prof. Ganiyev Shahriddin Vohidovich
Graduate student of TIF Rustamova Iroda Bahtiyorovna


Abstract
Fixed asset maintenance is an essential aspect of asset management that involves performing regular inspections, cleaning, and repairs to ensure that assets are in good working condition. There are several types of maintenance, including preventive, corrective, predictive, condition-based, planned, and breakdown maintenance, each with its own benefits and drawbacks. Effective maintenance can help organizations to improve asset performance, reduce downtime, increase efficiency, ensure safety, comply with regulations, and maintain asset value. Ultimately, proper maintenance can help organizations to extend the useful life of their assets and maximize their return on investment.
Key words: fixed assets, fixed assets maintenance, costs, useful life of fixed assets, efficiency, reduce costs and maximize profits.
A fixed asset is a long-term tangible asset that is used in the production or supply of goods and services, and has a useful life of more than one accounting period. Fixed assets are also known as property, plant, and equipment (PP&E) and include items such as buildings, land, machinery, vehicles, furniture, and fixtures.
Fixed assets are essential for the operation of a business and are typically used to generate revenue. They are not intended for resale and are expected to provide benefits to the organization for a significant period. Fixed assets are recorded on the balance sheet and are subject to depreciation, which is the process of allocating the cost of the asset over its useful life.
Fixed assets are an important component of a company's financial statements and are used to calculate key financial ratios such as return on assets (ROA) and asset turnover. Proper management of fixed assets is essential for maximizing their value and ensuring that they are used efficiently to support the organization's strategic objectives.
Fixed asset maintenance refers to the process of keeping fixed assets in good working condition to ensure that they operate efficiently and effectively throughout their useful life. It typically involves a range of activities, including regular inspections, cleaning, lubrication, and repairs. Maintenance schedules may vary depending on the type of asset, its age, and its usage. Organizations may also use computerized maintenance management systems (CMMS) to track maintenance activities and ensure that they are completed on schedule.
There are several types of fixed asset maintenance that organizations can use to keep their assets in good working condition. Here are some of the most common types: