When Yield Management Is Implemented Which One of the Following

question 6

Multiple Choice

When yield management is implemented which one of the following does not result:

• A) consumer surplus increases
• B) multiple prices are offered
• C) capacity is more fully utilized
• D) market for the service is segmented

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Definitions:

Period Costs

Expenses incurred by a business that are not directly tied to the production process and are charged to the period in which they occur.

Variable Cost

Expenditures that are directly correlated with the volume of production or output level.

Manufacturing Overhead

All manufacturing costs that are not direct materials or direct labor, including expenses related to running the factory.

Operating Leverage

A measure of how revenue growth translates into growth in operating income. It is an indicator of the fixed versus variable costs in a company's operation.