Certified Aviation Manager (CAM) Practice Test

Which of the following represents a fixed cost in aviation maintenance?

1. Shop equipment expenses

2. Repair parts

3. Engine overhaul

4. Inspections

The correct answer is: Shop equipment expenses

In aviation maintenance, fixed costs are those that remain constant regardless of the level of activity or usage of maintenance services. Shop equipment expenses are considered fixed costs because they represent investments made in machinery, tools, and technology that do not fluctuate with the rate of maintenance tasks performed or the number of aircraft being serviced. These expenses are incurred regardless of operational activity, meaning that whether the maintenance shop handles one aircraft or several, the costs associated with maintaining and operating the shop's equipment remain largely the same. In contrast, repair parts, engine overhauls, and inspections are typically variable costs, as these expenses can change depending on the extent of repairs needed or the specific services performed. For example, the cost of repair parts directly correlates with the number of repairs being carried out, engine overhauls occur based on specific operational needs, and inspections may vary in frequency and complexity based on aircraft usage. This distinction underscores why shop equipment expenses stand out as a fixed cost in aviation maintenance.