REVENUE MANAGEMENT FINAL
EXAM CH. 1 EXAM QUESTIONS AND
ALL CORRECT ANSWERS 100%
SOLVED AND GUARANTEED
SUCCESS!!
1. What is the industry term used to describe the sum of prices paid by a business's
customers?
CORRECT ANSWER: Total Revenue
Rationale:
Total Revenue refers to the complete amount of money generated from sales of products or
services before expenses are deducted.
2. Historically, what concept have hospitality managers chiefly used to calculate their selling
prices?
CORRECT ANSWER: Costs
Rationale:
Traditional hospitality pricing was mainly based on determining costs and adding a desired
profit margin.
3. What is an algebraic equivalent of the formula: Sales = Costs + Profit?
CORRECT ANSWER: Profit = Sales - Costs
Rationale:
By rearranging the formula, profit is determined by subtracting total costs from total sales
revenue.
4. What is the name for the net value achieved by both parties in a business transaction?
CORRECT ANSWER: Profit
, Rationale:
Profit represents the financial gain remaining after costs have been deducted from sales
revenue.
5. What element is not present in a barter economy?
CORRECT ANSWER: Money
Rationale:
A barter economy involves exchanging goods and services directly without the use of money.
6. What is the formula used to calculate an owner's ROI?
CORRECT ANSWER:
Owner's Investment Return ÷ Owner's Original Investment = Owner's Return on Investment
(ROI)
Rationale:
ROI measures the profitability of an investment compared with the amount originally invested.
7. Sandy has 100 hotel rooms to sell. This Saturday night has enough customers to sell 125
rooms, so she will be refusing 25 requests for rooms. What is this an example of?
CORRECT ANSWER: Constrained Supply
Rationale:
Constrained supply occurs when customer demand exceeds the available supply of products or
services.
8. Which industry was the first to use Yield Management principles?
CORRECT ANSWER: Airline Industry
Rationale:
Airlines pioneered yield management by adjusting ticket prices according to demand, timing,
and availability.
EXAM CH. 1 EXAM QUESTIONS AND
ALL CORRECT ANSWERS 100%
SOLVED AND GUARANTEED
SUCCESS!!
1. What is the industry term used to describe the sum of prices paid by a business's
customers?
CORRECT ANSWER: Total Revenue
Rationale:
Total Revenue refers to the complete amount of money generated from sales of products or
services before expenses are deducted.
2. Historically, what concept have hospitality managers chiefly used to calculate their selling
prices?
CORRECT ANSWER: Costs
Rationale:
Traditional hospitality pricing was mainly based on determining costs and adding a desired
profit margin.
3. What is an algebraic equivalent of the formula: Sales = Costs + Profit?
CORRECT ANSWER: Profit = Sales - Costs
Rationale:
By rearranging the formula, profit is determined by subtracting total costs from total sales
revenue.
4. What is the name for the net value achieved by both parties in a business transaction?
CORRECT ANSWER: Profit
, Rationale:
Profit represents the financial gain remaining after costs have been deducted from sales
revenue.
5. What element is not present in a barter economy?
CORRECT ANSWER: Money
Rationale:
A barter economy involves exchanging goods and services directly without the use of money.
6. What is the formula used to calculate an owner's ROI?
CORRECT ANSWER:
Owner's Investment Return ÷ Owner's Original Investment = Owner's Return on Investment
(ROI)
Rationale:
ROI measures the profitability of an investment compared with the amount originally invested.
7. Sandy has 100 hotel rooms to sell. This Saturday night has enough customers to sell 125
rooms, so she will be refusing 25 requests for rooms. What is this an example of?
CORRECT ANSWER: Constrained Supply
Rationale:
Constrained supply occurs when customer demand exceeds the available supply of products or
services.
8. Which industry was the first to use Yield Management principles?
CORRECT ANSWER: Airline Industry
Rationale:
Airlines pioneered yield management by adjusting ticket prices according to demand, timing,
and availability.
