Revenue Management (RM) uses different pricing and other techniques to manage customer demand for a company’s products and services. It is reasonable for income or for worse, and brings rational approaches to the pricing of goods and / or services with a limited shelf life. Since many types of companies with growing sales has a disproportionate impact on operating income, and companies who know often manage their customers better final results by growing revenue Rathe … Read more »

Revenue Management (RM) uses different pricing and other techniques to manage customer demand for a company’s products and services. It is reasonable for income or for worse, and brings rational approaches to the pricing of goods and / or services with a limited shelf life. Since many types of companies with growing sales has a disproportionate impact on operating income, and companies who know often manage their customers better final results by growing revenue and not cost cuts. Originally developed as a marketing tool for the pricing of air tickets, which can present many RM applications from accounting tools that verify that applications to improve operating results and monitor their success help benefit. Knowledge of a company’s cost structure, operating leverage, in particular, and when adjustments are to treat RM as special orders, the principal accounting focal point. Opportunity cost variances and insights from the theory of constraints to effective management of revenue / profit enhancement programs. Use proper accounting information and analytical techniques can help an organization become more tolerate a desirable marriage of mutual choice between necessity RM programs and firm strategy.
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from
Ronald J. Huefner,
James A. Largay
Source: Business Horizons
11 pages.
Release Date: 15, May 2008. Prod #: BH280-PDF-ENG
The role of accounting information in revenue management solution HBR case

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