Growth in Services and Growth in Traffic Capacity Go Hand

question 5

True/False

Growth in services and growth in traffic capacity go hand in hand.

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Definitions:

Activity-Based Costing

A technique in cost accounting which allots overhead and indirect costs to related products and services, dependent on the activities they engage in.

Activity Cost Pools

Groups of individual costs driven by the same cost drivers, used in activity-based costing to allocate costs more accurately.

Customer Margin

The profit margin that a company earns from a particular customer, taking into account all revenues and costs associated with that customer.

Idle Capacity

The condition when resources, typically manufacturing or production facilities, are available but not in use.