A Key Benefit of Virtualization Is a Reduction in the Total

question 73

True/False

A key benefit of virtualization is a reduction in the total cost of ownership - a VM costs 75% less to operate than a physical server over a 3 year period.

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Definitions:

Fixed Costs

Fixed expenses unaffected by variations in production volume or sales figures, like rental fees, salary payments, and insurance costs.

Graphical Approach

A method of solving problems or representing data using diagrams, charts, or graphs.

CVP Analysis

Cost-Volume-Profit Analysis, a management accounting methodology used for understanding the relationship between costs, volumes of sales, and profit.

Variable Cost

Costs that vary in proportion to the level of activity or volume of production in a business.