Yield Management Is the Process of Allocating the Right Type

question 46

True/False

Yield management is the process of allocating the right type of capacity to the right type of customer at the right prices at the right time to maximize revenue or yield.

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Definitions:

Dividend Payout Ratio

An economic indicator reflecting the proportion of a corporation's net earnings distributed to its stockholders as dividends.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by stockholder's equity.

Profit Margin

The percentage of revenue that remains as income after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenue.

Fixed Asset Capacity

The maximum production or service level that a company can sustain with its current fixed assets, such as machinery and equipment.