If You Allocate Scarce Resources to Customers at Prices That

question 92

Multiple Choice

If you allocate scarce resources to customers at prices that maximize the yield to the company you are using:

• A) level aggregate planning
• B) chase production planning
• C) price fixing
• D) yield management
• E) price compression

---

Definitions:

Honoring a Note

The act of paying off a note payable or bond at its maturity, fulfilling the issuer's obligation.

Note Receivable

A note receivable is a financial asset representing a written promise to receive a specific amount of money, with interest, from another party by a certain date.

Percent of Sales Method

A financial analysis tool used to forecast future expenses or accounts such as bad debts, based on a percentage of sales.

Bad Debts Expense

Represents the amount of accounts receivable a business does not expect to collect and charges off as a loss in its financial statements.