Equipment Acquisition & Disposal Flashcards

When disposing of computer equipment used at trade show registration desks, which federal law governs data security obligations before disposal?

Answer: FTC Safeguards Rule / FACTA Disposal Rule

The FTC Disposal Rule and Safeguards Rule require businesses to take reasonable measures to destroy sensitive data stored on devices before disposal.

An exhibition manager negotiates a volume discount on booth carpet. This tactic is an example of which procurement leverage strategy?

Answer: Supply consolidation / spend aggregation

Aggregating purchasing volume with a single supplier increases buying power, enabling negotiation of lower per-unit pricing.

A venue is retiring a generator that used R-22 refrigerant. What regulatory requirement applies to its disposal?

Answer: EPA Section 608 refrigerant recovery requirements

EPA Section 608 of the Clean Air Act prohibits venting refrigerants and requires certified technicians to recover them before equipment disposal.

Which factor most significantly increases the residual value of leased exhibition equipment at lease end?

Answer: Low utilization and well-documented preventive maintenance

Equipment with low wear and complete maintenance records commands higher residual value because it demonstrates preserved operational condition.

An exhibition organization is evaluating two forklifts: one electric and one propane. For an indoor show environment, which acquisition factor is most critical beyond purchase price?

Answer: Indoor air quality and emissions compliance

Propane forklifts emit carbon monoxide, making emissions compliance and ventilation requirements a critical factor for enclosed exhibition halls.

A trade show organization transfers equipment to a subsidiary at below-market value. Which accounting concern does this raise?

Answer: Related-party transaction disclosure and transfer pricing scrutiny

Below-market transfers between related entities require disclosure and may be scrutinized by auditors and tax authorities for transfer pricing compliance.

Which metric best measures the efficiency of an exhibition organization's equipment acquisition process?

Answer: Purchase cycle time from requisition to delivery

Purchase cycle time tracks how quickly the organization moves from identifying a need to receiving equipment, revealing procurement bottlenecks.