A General Asset Theory

Cover A General Asset Theory
A General Asset Theory
James J James John Linn
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In this sense, an asset always furnishes the same type of service - 69 - not different types. Yet we speak of an asset as furnishing different services (e. G. , for a truck, ton miles or passenger miles). Why is this so? From the point of view of what the asset does there is only one type of service. From the point of view of what is received from the asset, there are different types of services. The service received varies as the type of object which is subject to the service varies.
Both thes
...e methods of labeling the services of an asset are logical. Only one of the two should be chosen for use. There is no problem: the choice has already been made. Services are labeled with respect to the object which is subject to the service. This is conven- ient and operational. We think in terms of a number of people or tons of material to be moved. If we wish to think in terms of the service an asset furnishes, we must first translate people and material into units of the appropriate service. Some day, when we have a greater choice in the devices available to us, we may think in this manner.

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