Analyzing the service contract when buying equipment.
When purchasing equipment, financial managers must consider how much maintenance and repair will cost in addition to the initial purchase price. Equipment service contracts can help ease the cost of equipment maintenance. But before signing a contract, financial managers should carefully analyze the agreement, considering such factors as vendor qualifications, covered equipment, and the term, coverage, conditions, and cost of the agreement.
D003284:Contract Services / Q000592:standards*; D004865:Equipment and Supplies, Hospital; D005376:Financial Management / Q000592:standards*; D008283:Maintenance / Q000592:standards*; D011682:Purchasing, Hospital / Q000379:methods*; D014481:United States