In a Revenue Management System, Forecasting, Allocation, Overbooking, and Pricing

question 27

Multiple Choice

In a revenue management system, forecasting, allocation, overbooking, and pricing must work in unison if the objective is to:

• A) manage a nonperishable asset.
• B) meet the future demand of goods and services.
• C) determine the single price that needs to be charged to all customers.
• D) maximize the revenue generated by a perishable asset.

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Definitions:

Seasonal Nature

The characteristic of certain processes, businesses, or industries that experience regular and predictable changes that recur every calendar year.

Cash Cycle

The cash cycle is a period between the outlay of cash for the purchase of inventory and the receipt of cash from customer sales, measuring the efficiency of a company's cash management.

Accounts Payable Period

The time it takes for a company to pay off its suppliers after a purchase is made, typically measured in days.

Liberal Accounts Receivable Policy

A policy that involves offering lenient credit terms to customers, such as extended periods before payment is due, which can encourage sales but may increase the risk of bad debts.