Consumable Assets Clause Samples
The "Consumable Assets" clause defines how assets that are intended to be used up or depleted during the course of a contract are managed and accounted for. It typically specifies which items are considered consumable, such as office supplies, raw materials, or fuel, and outlines the procedures for their usage, replenishment, and cost allocation. This clause ensures that both parties understand their responsibilities regarding the supply and consumption of these assets, thereby preventing disputes over usage rates or replacement obligations.
Consumable Assets. (a) The cost of acquiring a consumable asset used in the Work, and costing less than $1,000, is an Eligible Cost in the year in which it is purchased and the asset can be disposed of at the end of the Term.
(b) Such assets include mobile telephones, digital cameras, computer software programs, electronic calculators, printers, facsimile machines, photocopiers, and other office-type equipment.
(c) Computers and furniture costing more than $1,000 are not consumable assets for the purposes of this Recipient Agreement and must be treated according to Section 2.3.4 (Computers and Office Furniture) of this Schedule 4 (Eligible Cost Rules).