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

Question

Quizplus · Accepted Answer

The question is about scheduling maintenance during low production periods, and the answer options suggest different possible cost drivers for machine maintenance. Option A is the best choice as it recognizes the need for an understanding of operations to determine an appropriate cost driver. Without this understanding, it may be difficult to identify the factors that contribute to machine breakdowns and repairs, and to allocate the cost of maintenance to the appropriate cost object or activity. Option B is not relevant as it assumes that low production causes maintenance, which may not be the case. Option C is not accurate, as machine maintenance can be predicted to some extent based on historical data, industry standards, and condition monitoring techniques. Option D is incorrect as it implies that low production is always linked to high repair costs, which is not necessarily true, as maintenance costs depend on various factors, such as the age and condition of the equipment, the type of maintenance performed, the quality of spare parts used, and the skills of the maintenance personnel.

If Machine Maintenance Is Scheduled at a Time When Production