As a firm's maintenance commitment increases:
A)the breakdown maintenance costs increase,and the preventive maintenance costs decrease.
B)both the breakdown maintenance costs and the preventive maintenance costs decrease.
C)the breakdown maintenance costs decrease,and the preventive maintenance costs increase.
D)both the breakdown maintenance costs and the preventive maintenance costs increase.
E)None of the above is true.

Question

Quizplus · Accepted Answer

As a firm's maintenance commitment increases, the breakdown maintenance costs decrease because the equipment is being maintained regularly, which reduces the likelihood of breakdowns. However, the preventive maintenance costs increase because the firm is investing more in maintaining the equipment.

As a Firm's Maintenance Commitment Increases