Yield Management Means

question 87

Multiple Choice

Yield management means:

• A) setting prices by simply marking up the merchandise without considering price sensitivity.
• B) understanding and implementing pricing based on costs.
• C) implementing steps for reducing markdowns.
• D) managing promotions that yields higher sales.
• E) adjusting prices in response to demand in order to control sales generated.

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Definitions:

Gross Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold; it measures a company’s production efficiency.

Sales Revenue

The income received by a company from its sales of goods or the provision of services.

Product Costs

The total costs directly tied to the creation of a product, including raw materials, labor, and overhead expenses.

Periodic Inventory System

An inventory accounting system that records the inventory levels and cost of goods sold (COGS) at the end of an accounting period, not tracking each sale or purchase individually.