The Role of Accounting Information in Revenue Management Harvard Case Solution & Analysis

Revenue management (RM) is used differential pricing and other management practices in consumer demand for products and services. It is trading at a reasonable yield and damage, and brings rational approaches to pricing of goods and / or services with a limited shelf life. Because many businesses believe that revenue growth has a disproportionate impact on the operating profit of the company who know and manage their customer base often achieve better bottom-line results, revenue growth, not cost-cutting. Originally designed as a marketing tool for airline tickets prices, RM numerous modern applications can benefit from accounting tools to help evaluate how applications will increase operating income and track their progress in this direction. Knowledge of the cost structure of the company, operating leverage, in particular, and when treated RM adjustments special orders, are the main pillars of accounting. Opportunity cost of deviations and knowledge of the theory of constraints contribute to the effective management of revenue / profit improvement programs. Using appropriate accounting information and analytical techniques can help tolerated association between the need for RM program and strategy of the firm is wanted marriage mutual choice. "Hide
by Ronald J. Huefner, James A. Largay Source: Business Horizons 11 pages. Publication Date: May 15, 2008. Prod. #: BH280-PDF-ENG

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