Furniture, Fixtures, and Equipment

2. 27 Furniture, Fixtures, and Equipment

3. You Should Be Able To: • Identify management considerations surrounding the selection and procurement of furniture, fixtures and equipment. • Outline the general procedures used when purchasing furniture, fixtures, and equipment.

4. You Should Be Able To (con.): • Describe the major selection factors for furniture, fixtures, and equipment. • Evaluate financing options when purchasing furniture, fixtures, and equipment.

5. FFE as Capital Items • Capital items are long-life items. • Most capital items are depreciable assets. • Typically, the cost of many FFE items cannot be used as tax deductions in the year they were purchased. • Value is depreciated over a period of years.

6. Management Considerations • Effect future plans might have on the need for FFE • Obsolescence • Capitalizing an operating expense

7. General Procedures in FFE Purchasing • Is replacement necessary? • Visiting trade shows • Financing and the need to obtain competitive bids

8. The FFE Specification • Similar in scope to other specifications • Supplier services are very important • Instructions to bidders • General conditions • Specific conditions • Detailed drawings

9. Selection Factors • Intended use • Exact name • Lifetime cost • Potential operating savings • Direct purchase • Demonstration models • Equipment programs • Custom FFE • New vs. used

10. Selection Factors (cont.) • Versatility • Compactness • Compatibility • Appearance • Brand name • Portability • Ease of cleaning • Ease of maintenance • Degree of automation • Availability of replacement parts

11. Selection Factors (cont.) • Supplier services • Employee attitude and skill level • Energy source • Excess capacity • Add-on capabilities • Warranty • Code compliance

12. The Purchase of FFE • Cash • Installment Credit