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2 years ago

What are cost drivers for airlines?

Business

1 answer:

loris [4]2 years ago

6 0

Labor and fuel are the cost drivers of airlines.

A cost driver is a variable that causes a change in costs when the cost driver changes. In other words, it is a variable that influences the expenditures of the organization.

A cost driver is the immediate cause of a company expenditure. A cost driver is any activity that causes the cost of anything else to increase. As an example, the volume of water at the workplace uses in a month influences the cost of the water bill. The cost drivers are water units, and the cost is the water bill.

Therefore, the answer is labor and fuel since when the prices of these are changes the cost also changes.

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Matrix Inc. calculates cost for an equivalent unit of production using weighted average method . Data for July: Work in process

OverLord2011 [107]

Answer:

Matrix Inc.

The cost of goods completed and transferred out under the weighted-average method is calculated to be:

C. $571,200

Explanation:

a) Data and Calculations:

Data for July:

Work in process inventory, July 1 (36,000 units)

Direct materials (100 % completed) $122,400

Conversion (50 % completed) 76,800

Balance in work in process inventory, July 1 $199,200

Units started during July 90,000

Units completed and transferred 102,000

Work in process inventory, July 31 24,000

Direct materials (100% completed)

Conversion (50% completed)

Cost incurred during July:

Direct materials$180,000

Conversion costs 288,000

Physical flow:

Work in process inventory, July 1 (36,000 units)

Units started during July 90,000

Units completed and transferred 102,000

Work in process inventory, July 31 24,000

Units Direct materials Conversion

Equivalent units of production:

Units completed and transferred 102,000 102,000 102,000

Ending work in process 24,000 24,000 (100%) 12,000 (50%)

Total equivalent units 126,000 114,000

Cost of production:

Direct materials Conversion Total

Beginning work in process $122,400 $76,800 $199,200

Costs incurred during July 180,000 288,000 468,000

Total production costs $302,400 $364,800 $667,200

Cost per equivalent unit:

Direct materials Conversion

Total production costs $302,400 $364,800

Total equivalent units 126,000 114,000

Cost per equivalent unit $2.40 $3.20

Cost assigned to: Direct materials Conversion Total

Completed and transferred out $244,800 $326,400 $571,200

Ending work in process 57,600 38,400 96,000

Total costs assigned $302,400 $364,800 $667,200

4 0

3 years ago

Which of the following statements are inconsistent with the efficient market hypothesis?a. The average annual return on stocks i

koban [17]

Answer:

b. Stocks that outperform the index in March always underperform it in April.

d. Stocks that outperform the index in March always outperform it in April.

Explanation:

The Efficient market hypothesis states that in an efficient market, all the available information in the market are reflected in the prices of the stocks being traded. As such, all stock are fairly priced.

Stocks that perform in a certain way in March and then in another way in April are violations of the hypothesis. This is because if indeed the market was efficient, the prices would adjust to reflect the different performances by month such that there would be no more fluctuations.

6 0

3 years ago

Read the introduction to an argumentative essay about entrepreneurs and free enterprise. Mary Kay Ash wanted to write a book abo

katrin [286]

Answer:

The introduction is effective because it is setting an example of why the thesis behind the book is correct.

Mary Kay Ash, instead of introducing with a statement about her ideas, and why she believes in those, decided to tell a story about a business plan. This is a concrete form to show that under a free enterprise system, women like her, are able to succeed in the business world because they are given the freedom to do so.

3 0

3 years ago

Read 2 more answers

Firms that sell luxury products, custom-made products, and services (like wedding planners, home builders, etc) often take the t

Illusion [34]

Answer:

One to one marketing

Explanation:

One to one marketing refers to that form of marketing wherein the seller's focus is upon identifying and satisfying individual customer needs and creating products of value, tailor made for satisfying those needs.

Under such form of marketing, the seller stresses upon knowing individual choices and preferences and then serving the customer needs on individual or one to one basis.

One to one marketing is of two forms, personalization and customization. Under the former, the seller recommends products to customers based upon their past purchase history.

Under customization , the company provides an option to the customers to get a product customized as per their requirement and needs.

5 0

4 years ago

Given the following financial structure for Company S for all of 2016:

Mila [183]

Answer:

Explanation:

A.)

The Basic EPS can be determined by using the formula:

$\mathtt{Basic \ EPS = \dfrac{Net \ income \ attributabe \ to\ common \ stock \ holders }{\text{common stock outstanding throughout the year}} }$

$\text{Given Net income = \$2,600,000}$

$\text{Net income available for common stock holders = }$ $\text{ Net income given less dividend}$

$\text{ to preferred holders of stock}$

$\mathtt{=$2,600,000 - $100 \times 50000\times 6\%}$

$=\$2,300,000$

$\text{Common stock} = $800,000$

∴

$\mathbf{Basic \ EPS = \dfrac{\$2,300,000}{800,000} }$

$\mathbf{Basic \ EPS = \$2.88 \ per \ common \ stock}$

B.)

The calculations for the numerator and denominator effect are:

$\text{Calculation of the effect on incremental EPS}$

Convertible on preferred stock $\mathtt{=\dfrac{500,000 \times 100 \times 6\%}{50000\times 5}}$

$=1.20$

Convertible Bond $=\dfrac{500,000 \times 8\%\times 70\%}{\dfrac{500,000}{1000\times 20}}$

= 2.80

Stock options $= \dfrac{0}{100,000- (100,000\times \dfrac{60}{80})}$

= 0

Determination of the numerator & denominator effect for each convertible securities shown above are:

Numerator (N) Denominator (D) Dilution index = N/D

Net income $2,600,000

Less: Preferred $300000

Dividend

Common stock A

Net income $2,300,000 800,000 2.875

Add: Stock

Options (B) 0 25000

Total (C) = (A + B) $2300000 825000 2.788

Add: Convertible

Bonds (D) 428000 10000

Total (E) = (C+D) $2328000 835000 2.787

Add: Convertible

Preferred Stock (F) $300000 250000

Total (E) + (F) $2628000 1085000 2.422

C.)

Particulars Dilutive Index Rank (most dilutive is 1.)

Stock Option 2.788 1

Convertible Bonds 2.787 3

Preferred Stock 2.422 2

D.)

From above, the convertibles are diluted EPS (DEPS)

$\text{ DEPS =Net income available common stockholders + net tax dividend on convertible securities}$ ÷ $\text{weighted average no. of common shares + effect of convertible stock + convertible stock options}$

$\text{DEPS (1{st} stage) for only common stock}= \dfrac{2300000}{800000} = \$2.88}$

$\text{DEPS (2{st} stage)with \ stock \ options}= \dfrac{2300000+0}{800000+25000} = \$2.788}$

$\text{DEPS (3{st} stage)with \ stock \ options \& preferred \ stock }= \dfrac{2300000+300000+0}{800000+250000+25000} = \$2.42}$

3 0

3 years ago