Shop

Artificial Intelligence Notice: ISA prohibits the entry of any ISA intellectual property (“ISA IP”), including standards, publications, training or other materials into any form of Artificial Intelligence (AI) tools, such as ChatGPT. Additionally, creating derivatives of ISA IP using AI is also prohibited without express written permission from ISA’s CEO. In the case of such use, ISA will suspend a licensee’s access to ISA IP, and further legal action will be considered. Please review ISA's policies for Use of AI Tools, Intellectual Property and Terms and Conditions for further information.

Important Notice: Print books are temporarily unavailable. As of 12 August 2025, print books are no longer available for purchase on isa.org, but beginning 1 January 2026, they will be available for purchase through our publishing partner, Wiley. Kindle and ePub formats are still available via the links on each book's product page on isa.org. Learn More.

  • CAP

CAP question

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
 
CAP answer
The answer is B, “revenue = fixed costs + variable costs.” When the sum of all fixed costs and variable costs are added together, if the sum just equals the revenues (or expected revenues) received, then we say we are at a “break even” point.
 
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.
 

 

Reader Feedback


We want to hear from you! Please send us your comments and questions about this topic to InTechmagazine@isa.org.



Like This Article?

Subscribe Now!

About The Author