If machine maintenance is scheduled at a time when production is at a low level, then ________.
A) low production is the cost driver of high repair costs
B) an understanding of operations is needed to determine an appropriate cost driver
C) low production should be avoided since it is the cause of machine maintenance
D) machine maintenance cannot be accurately predicted

Question

Quizplus · Accepted Answer

An understanding of operations is necessary to determine an appropriate cost driver. Low production may be scheduled intentionally during a maintenance period to minimize downtime and maximize efficiency. Therefore, low production cannot be simply assumed to be the cost driver of high repair costs. Avoiding low production is also not necessarily the solution, as it may be necessary for maintenance or other purposes. Machine maintenance can be accurately predicted and scheduled.

If Machine Maintenance Is Scheduled at a Time When Production