Yield Management Pricing Refers to

question 140

Multiple Choice

Yield management pricing refers to

• A) controlling the production of products based upon seasonal demand.
• B) deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well.
• C) charging the same prices during different times of the day or days of the week to reflect variations in supply for the service.
• D) offering significant price discounts to wholesalers that agree to purchase products in advance for a period of a year or more at a time.
• E) charging different prices to maximize revenue for a set amount of capacity at any given time.

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Definitions:

Service Cost

The portion of the expense of a pension plan that is attributed to the increase in pension benefits due to employee service in the current period.

Interest Cost

The cost incurred by an entity for borrowing funds, typically calculated as the interest rate times the principal amount of the debt.

Return On Plan Assets

The rate of return earned on the investments of a pension plan or other retirement fund over a specified period.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis.