A highly automated plant would generally have
A) more variable than fixed costs.
B) more fixed than variable costs.
C) all fixed costs.
D) all variable costs.

Question

Quizplus · Accepted Answer

A highly automated plant typically has a high amount of fixed costs as the majority of the costs are associated with the machinery and equipment used for automation. However, the variable costs may also increase in the long run due to maintenance and repair costs.

A Highly Automated Plant Would Generally Have