The Damage of Momentary Traffic Peaks Can Be Addressed by ________

question 47

Multiple Choice

The damage of momentary traffic peaks can be addressed by ________.

• A) using priority
• B) adding more capacity
• C) both A and B
• D) neither A nor B

---

Definitions:

Margin of Safety

This financial ratio measures the difference between actual or expected sales and the break-even point, indicating the cushion a company has before it incurs a loss.

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behavior are valid.

High-low Method

A way to estimate the cost-behavior formula that uses the highest and lowest levels of activity to determine fixed and variable costs.

Activity Index

A measure or indicator used to gauge activity levels within a particular domain, such as manufacturing or stock trading volume.