- CAP
Summary
Certified Automation Professionals (CAPs) are responsible for the direction, design, and deployment of systems and equipment for manufacturing and control systems. For more information, visit the CAP webpage.
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 costB. revenue = fixed costs + variable costs
C. total costs = fixed costs + variable costs
D. revenue > fixed costs – variable costs
CAP answer
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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