Which of the Following Statements About Yield Management Systems (YMS)is

question 58

Multiple Choice

Which of the following statements about yield management systems (YMS) is true?

• A) The first use of YMS was in the U.S.car industry as it looked for ways to compete with imports.
• B) YMS eliminate the problem of simultaneous production and consumption from services.
• C) YMS cannot be used by any other businesses but services.
• D) YMS are complex pricing systems used to set equilibrium pricing points.
• E) YMS are mathematically complex systems to make use of underutilized capacity and reduce the cost of perishability.

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Definitions:

Aging Method

An accounting technique used to estimate the amount of bad debts (uncollectible accounts) by categorizing accounts receivable according to their age (how long they have been outstanding).

Allowance Account

A contra asset account associated with accounts receivable that estimates the amount of receivables that may not be collected.

Doubtful Accounts

An estimate of the debts owed to a company that may not be collected, often listed as a contra account to accounts receivable.

Accounts Receivable

Funds that are yet to be paid by customers for the products or services they have received from a business.