In the general equation for determining the cost of manufacturing (COM ), Equation (8.2), one of the

Question:

In the general equation for determining the cost of manufacturing (COM ), Equation (8.2), one of the terms is 0.180FCI, where FCI is the fixed capital investment of the plant. “This term is included to cover the interest payment on the loan for the plant.” Is this statement true or false? Explain your answer. COMA 0.180 FCI +2.73COL + 1.23(CUT + CWT + CRM) (8.2)