From an Operational Perspective, Yield Management Is Least Effective Under

question 17

Multiple Choice

From an operational perspective, yield management is least effective under which of the following circumstances?

• A) Demand can be segmented by customer.
• B) The product can be sold in advance.
• C) The product can be kept to be sold when demand is stronger.
• D) Fixed costs are high, and variable costs are low.
• E) Demand is highly variable.

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Definitions:

Normal Balance

The side (debit or credit) of an account that is typically increased.

Financial Statement

A documented account of financial transactions and standing for businesses, individuals, or alternative entities.

Permanent/Temporary

Terms distinguishing between accounts that are not closed out or reset at the end of the accounting year (permanent accounts) and those that are (temporary accounts).

Normal Balance

The standard side (debit or credit) on which increases to an account are recorded.