In plant operations cost analysis, which of the following describes a “break-even” cost situation?A. fixed costs = equipment costs + building cost + land cost
B. revenue = fixed costs + variable costs
C. total costs = fixed costs + variable costs
D. revenue > fixed costs – variable costs
If revenues are greater than the sum of the costs, then we are operating at a profit. If revenues are less than the sum of the costs, then we are operating at a loss.
Reference: Sands, Nicholas P. & Verhappen, Ian, A Guide to the Automation Body of Knowledge, Third Edition, ISA Press, 2019.
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