Operational expenses are the costs incurred by an organization to maintain and use an asset throughout its lifecycle. These costs include the expenses related to the repair, maintenance, upgrade, and disposal of the asset. Some examples of operational expenses are:
Replacement parts: These are the costs of purchasing and installing new parts or components for an asset that is damaged, worn out, or obsolete. For example, replacing a hard drive, a battery, or a keyboard for a laptop.
Maintenance agreements: These are the costs of contracting with a vendor or a service provider to perform regular or preventive maintenance on an asset. For example, paying a monthly fee for a technician to check and service a printer or a scanner.
Other examples of operational expenses are:
Storage costs: These are the costs of renting or owning a space to store an asset that is not in use or awaiting disposal. For example, paying for a warehouse, a locker, or a shelf to keep unused or surplus computers or monitors.
Warranty costs: These are the costs of extending or renewing the warranty coverage for an asset that is still under the manufacturer’s warranty or has expired. For example, paying an extra fee for a one-year or a three-year warranty extension for a tablet or a smartphone.
[References:, Hardware Asset Management overview, which describes the functionalities of the Hardware Asset Management application, including the dashboard, model normalization, hardware refresh, lease contract expiration, disposal orders, and RMA requests., Hardware Asset Management, which gives an overview of the benefits and features of the Hardware Asset Management solution, such as reducing costs, improving compliance, optimizing asset utilization, and enhancing service delivery., Hardware Asset Management - ServiceNow, which provides a data sheet with the key capabilities and benefits of the Hardware Asset Management application., , ]
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