REVENUE MANAGEMENT FINAL EXAM QUESTIONS
WITH COMPLETE SOLUTIONS GUARANTEED PASS
2025/2026
What is the revenue management term used to describe the perceived
benefit gained, minus the price paid, in a business transaction? -
ANSWER - >Value
What is created when a seller communicates to a buyer a description of
a product to be sold and the price at which that product will be sold? -
ANSWER - >A value proposition
Which one of the following terms is not one of the 4 Ps of the
Marketing Mix? - ANSWER - >Proposition
Which of the following terms would be included in the Place portion of
a hotel's marketing mix? - ANSWER - >Distribution
Channels
What is the fundamental assumption upon which the Law of Supply is
based? - ANSWER - >The higher the demand for a product the more of
it will be produced by sellers
According to Alfred Marshall's work, if the price of a product is lower
than the natural, or equilibrium price, what will happen? - ANSWER -
>The demand fort he product would exceed its supply
Assume an equilibrium price (P1) is in place for a product. What would
the law of supply and demand predict as an outcome if demand for that
,product increased? - ANSWER - >The new price (P2) would be lower
than the previous price (P1) because supply would decrease
What concept is displayed by the intersecting point on a supply and
demand curve? - ANSWER - >An estimate of the amount of a product
that would be purchased at a known price and point in time
What must be true if a product producer is to continue creating and
selling products? - ANSWER - >Revenues must exceed costs
What is the specialized branch of accounting that focuses on recording
and analyzing the expenses incurred by an organization? - ANSWER -
>Cost Accounting
What is the industry term for the point at which an organization's
revenues exactly equal its costs? - ANSWER - >Break-even point
Which of the following foodservice costs is a variable cost? - ANSWER -
>Food
Which of the following lodging costs is a fixed cost? - ANSWER -
>Mortgage payments
In a hospitality industry break-even analysis graph the Total Revenues
line starts at 0. Why does the Total Costs line always start farther up the
y axis? - ANSWER - >Because fixed costs are incurred even if no guests
are served or rooms are sold
Which of the following statements about unit costs in the hospitality
industry is true? - ANSWER - >Unit costs will vary based upon how high
or low an item is priced
, Which of the following statements about the relationship between
costs and pricing is true? - ANSWER - >An appropriate selling price for a
product or service must dictate its allowable costs
If a Revenue Manager implements an organization's strategic pricing
plan what personal characteristic of that Revenue Manager will be most
important for ensuring the plan's success? - ANSWER - >An
understanding of an organization's customers
Which formula represents a buyer's view of a sales transaction?
- ANSWER - >Perceived Value - Selling Price = Personal Profit
What type of benefit is lacking in material qualities and is not able to be
touched or seen but nonetheless can still be perceived? - ANSWER -
>Intangible
What will be the typical case in an auction when the initial price bid for
the item being sold is very low? - ANSWER - >The number of potential
bidders will be high
Penny Larson is traveling to San Francisco for a personal vacation.
Which of economist Milton Friedman's buyer value formulas would
apply to her purchase of the hotel rooms she will need during her trip?
- ANSWER - >Spending her own money on herself
Penny Larson is travelling to San Francisco on business. Her company
will reimburse 100% of her travel expense. Which of economist Milton
Friedman's buyer value formulas would apply to her purchase of the
WITH COMPLETE SOLUTIONS GUARANTEED PASS
2025/2026
What is the revenue management term used to describe the perceived
benefit gained, minus the price paid, in a business transaction? -
ANSWER - >Value
What is created when a seller communicates to a buyer a description of
a product to be sold and the price at which that product will be sold? -
ANSWER - >A value proposition
Which one of the following terms is not one of the 4 Ps of the
Marketing Mix? - ANSWER - >Proposition
Which of the following terms would be included in the Place portion of
a hotel's marketing mix? - ANSWER - >Distribution
Channels
What is the fundamental assumption upon which the Law of Supply is
based? - ANSWER - >The higher the demand for a product the more of
it will be produced by sellers
According to Alfred Marshall's work, if the price of a product is lower
than the natural, or equilibrium price, what will happen? - ANSWER -
>The demand fort he product would exceed its supply
Assume an equilibrium price (P1) is in place for a product. What would
the law of supply and demand predict as an outcome if demand for that
,product increased? - ANSWER - >The new price (P2) would be lower
than the previous price (P1) because supply would decrease
What concept is displayed by the intersecting point on a supply and
demand curve? - ANSWER - >An estimate of the amount of a product
that would be purchased at a known price and point in time
What must be true if a product producer is to continue creating and
selling products? - ANSWER - >Revenues must exceed costs
What is the specialized branch of accounting that focuses on recording
and analyzing the expenses incurred by an organization? - ANSWER -
>Cost Accounting
What is the industry term for the point at which an organization's
revenues exactly equal its costs? - ANSWER - >Break-even point
Which of the following foodservice costs is a variable cost? - ANSWER -
>Food
Which of the following lodging costs is a fixed cost? - ANSWER -
>Mortgage payments
In a hospitality industry break-even analysis graph the Total Revenues
line starts at 0. Why does the Total Costs line always start farther up the
y axis? - ANSWER - >Because fixed costs are incurred even if no guests
are served or rooms are sold
Which of the following statements about unit costs in the hospitality
industry is true? - ANSWER - >Unit costs will vary based upon how high
or low an item is priced
, Which of the following statements about the relationship between
costs and pricing is true? - ANSWER - >An appropriate selling price for a
product or service must dictate its allowable costs
If a Revenue Manager implements an organization's strategic pricing
plan what personal characteristic of that Revenue Manager will be most
important for ensuring the plan's success? - ANSWER - >An
understanding of an organization's customers
Which formula represents a buyer's view of a sales transaction?
- ANSWER - >Perceived Value - Selling Price = Personal Profit
What type of benefit is lacking in material qualities and is not able to be
touched or seen but nonetheless can still be perceived? - ANSWER -
>Intangible
What will be the typical case in an auction when the initial price bid for
the item being sold is very low? - ANSWER - >The number of potential
bidders will be high
Penny Larson is traveling to San Francisco for a personal vacation.
Which of economist Milton Friedman's buyer value formulas would
apply to her purchase of the hotel rooms she will need during her trip?
- ANSWER - >Spending her own money on herself
Penny Larson is travelling to San Francisco on business. Her company
will reimburse 100% of her travel expense. Which of economist Milton
Friedman's buyer value formulas would apply to her purchase of the
