Dear Experts,
Pl let me know whether repairs to plant and machinery is fixed cost or variable cost.
Repairs are due to breakage of machinery and general repairs.
kindly reply to me on shakil1984 @ yahoo.com
Regards,
Shakil Ahmed
CA Shakil Ahmed (CA) (48 Points)
27 September 2013Dear Experts,
Pl let me know whether repairs to plant and machinery is fixed cost or variable cost.
Repairs are due to breakage of machinery and general repairs.
kindly reply to me on shakil1984 @ yahoo.com
Regards,
Shakil Ahmed
Samrendra
(Asst. Manager- Internal audit)
(221 Points)
Replied 05 October 2013
If Repair is related to time interval then Fixed Cost such as Painting of Machinery after 3 years.
If Repair is related to running time of Machine then Variable Cost such as Compulsory Vehicle Servicing after 10,000 Km.
If Repair is related to both time and running time of Machine then it will be hybrid of Fixed and variable Cost
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