How Do Airlines and Hotels Overcome the Perishability of Their

question 36

Essay

How do airlines and hotels overcome the perishability of their services?

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Definitions:

FOB Destination

A shipping term indicating that the sale is considered complete and the goods owned by the buyer upon arrival at the buyer's location.

Credit Memo

A document issued by a seller to a buyer, reducing the amount owed, typically due to a return or refund.

Debit Delivery Expense

An accounting entry that increases the expense account related to the cost incurred for delivering goods or services.

Purchases Discounts

An allowance given by the seller to the buyer for early payment or for buying in bulk, reducing the amount owed.