Are maintenance costs variable since it's typically on a per equipment basis?
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Hi there,
Maintenance could be either a fixed or variable cost.
If maintenance is due for each unit produced and it has a cost per unit, then it would be a variable cost. If it is independent of the amount produced (eg the client pays a fixed fee per year for general maintenance of a factory), then it would be a fixed cost.
Best,
Francesco
Not so fast.
Variable costs are per unit produced, not just per unit.
If my maintenance costs go up x $ for every single extra unit produced, they are variable. In reality, this isn't actually how it works (there's a general wear and tear expected per year), so maintenance costs are generally viewed as fixed.
YES!
Have a look at this for detailed answer to same question: https://www.preplounge.com/en/consulting-forum/fc-vc-items-8370
Hello!
It can be both, depends on the context. Do you want to post here the problem so we can help you? Cheers,
Clara
Both. Some maintenance is based on metrics that are tied to actual production (e.g. a machine needs to be fully overhauled every 10.000 running hours). Other maintenance is fixed (the machine needs to be maintained once per year).
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