The Use of Overbooking, Allocating Capacity Among Customer Segments, and Differential

question 97

Multiple Choice

The use of overbooking, allocating capacity among customer segments, and differential pricing is what type of capacity management technique?

• A) Employee scheduling
• B) Yield/revenue management
• C) Capacity sharing
• D) Self-service

---

Definitions:

Quantity Variance

The difference between the actual quantity of materials or labor used in production and the expected (or standard) quantity.

Overhead Cost Variance

The difference between the actual overhead costs incurred and the standard or expected overhead costs.

Standard Cost Card

A document that lists the standard costs associated with producing a product, including materials, labor, and overhead rates.

Direct Labor Hour

Direct labor hour refers to the time spent by workers directly involved in the production of goods or services.