Which of These Is not a Characteristic That Makes Yield

question 132

Multiple Choice

Which of these is not a characteristic that makes yield management attractive to organizations that have perishable inventory?

• A) demand can be segmented
• B) service can be sold in advance of consumption
• C) capacity is easily changed
• D) variable costs are low and fixed costs are high
• E) demand fluctuates

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Definitions:

Net Loss

The amount by which total expenses exceed total revenues for a business over a specific period.

Withdrawal

The act of removing funds from an account, or the act of taking out resources or assets from a business by an owner for personal use.

Capital

The wealth, either financial or physical, that is used by a business to produce goods or services.

Income Summary

An account in which the revenues and expenses are temporarily recorded to calculate the net income or loss for a period, before transferring to the capital account.