As a piece of equipment begins to break down more often, the manager is often faced with a trade-off in which __________ are weighed against the __________.
A) failure rates; maintenance probabilities
B) maintenance intervals; maintenance programs
C) operating costs; variable costs
D) replacement costs; continued maintenance costs
E) fixed costs; maintenance costs

Question

Quizplus · Accepted Answer

When a piece of equipment begins to break down more often, the manager must weigh the replacement costs against the continued maintenance costs. They need to decide when it is more cost-effective to replace the equipment rather than continue to spend money on repairing it. Therefore, option D is the correct choice.

As a Piece of Equipment Begins to Break Down More