As Far as Maintenance Costs Are Concerned

question 93

Multiple Choice

As far as maintenance costs are concerned,

• A) for low levels of maintenance commitment, breakdown maintenance costs exceed preventive maintenance costs
• B) for low levels of maintenance commitment, preventive maintenance costs exceed breakdown maintenance costs
• C) for high levels of maintenance commitment, breakdown maintenance costs exceed preventive maintenance costs
• D) preventive maintenance is always more economical than breakdown maintenance
• E) Breakdown maintenance is always more economical than preventive maintenance when the "full cost of breakdowns" is taken into consideration.

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Definitions:

CIF Agreements

Contracts that stipulate the seller is responsible for the cost, insurance, and freight of goods being transported to a designated location.

Risk Of Loss

The responsibility for the cost of loss or damage to goods during shipment, distribution, or within a contractual period.

Carrier

A carrier refers to an individual or entity engaged in the business of transporting goods or people for any form of compensation.

Good-faith Purchaser

A person who buys property without notice of any other claim to or interest in it and for a fair value, thereby gaining legal rights to it over any previous claims.