Posted in Operations and Supply Chain Terms, Total Reads: 243
A component is an input or part of a system that distinctively performs a vital job or is required to be the part of the system or is desired to be included as a part of a finished product. These are removable in one piece from the complete system or item and are the integral part of the same. Small items of insignificant use are not considered as a component. Depreciation can be associated independently to different components in a financial statement.
Following characteristics can be associated with a component:
a) Unique properties
b) Unique operation
RAM (Random Access Memory) of a computer system can be called a component as it does the unique function of storing the volatile data. Similarly, a condenser is a component of a single phase fan as it provides the required phase shift for producing the rotating magnetic field which is responsible for the rotation of the fan.