DECA Hospitality and Tourism Cluster Practice Exam

Businesses that use computer software to track customer billing information create records about their customers'?

1. payment history

2. financial plans

3. income level

4. personal preferences

The correct answer is: payment history

The correct answer is focused on the concept of how businesses utilize computer software to manage their customer billing information. When a business implements such software, it is primarily concerned with documenting various aspects related to transactions, such as the amount billed, payment dates, and any past payments made by the customer. This results in creating a comprehensive record known as the payment history. Payment history is crucial for several reasons: it aids in credit assessments, helps businesses understand customer payment behaviors, and enables them to manage accounts receivable effectively. Accumulating this data allows businesses to track trends over time, identify any overdue payments, and refine their billing processes to enhance cash flow. In contrast, while financial plans, income levels, and personal preferences may be relevant in other contexts, they aren't typically derived directly from billing information. Financial plans are more concerned with an individual's budgeting and investment strategies, income levels reflect a customer's overall financial standing but are not usually captured in billing records, and personal preferences pertain to lifestyle choices rather than billing transactions. Thus, the most accurate choice regarding the information obtained from customer billing software is payment history.