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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.

To know more about the cost drivers click here:

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Vance has a vested account balance in his employer-sponsored qualified profit-sharing plan of $40,000. He has two years of servi

Maurinko [17]

Answer: $5,000

Explanation:

Per the requirements of qualified plans that permit loans, the maximum amount that an individual can withdraw is whichever is lesser between $50,000 and 50% of their Vested Account Balance.

Vance in this scenario has a vested account balance of $40,000.

50% of that would be $20,000.

That means that he can be loaned $20,000. However, he already has an outstanding loan balance that must be accounted for of 15,000.

Subtracting those figures we have,

= 20,000 - 15,000

= $5,000

The maximum loan that Vance can take from the qualified plan is $5,000

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3 years ago

True or false: you should only create a slide presentation if you know that you will be presenting in a smart room.

siniylev [52]

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3 years ago

Read 2 more answers

Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.45 per pound. 15,700

Andru [333]

Answer:

A) Price 7,080 U

B) Quantity 4,630.5 U

C) Total 11.710,5‬ U

Explanation:

DIRECT MATERIALS VARIANCES

$(standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance$

std cost $3.45

actual cost $3.65

quantity 35,400

difference $(0.20)

$(0.2) \times 35,400 = DM \: price \: variance$

price variance $(7,080.00)

$(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance$

std quantity 36110.00

actual quantity 35400.00

std cost $3.45

difference 710.00

$(710) \times 3.45 = DM \: quantity \: variance$

quantity variance $2,449.50

Total Variance: 2,449.5 - 7,080 = -4.630,5‬

8 0

3 years ago

Windsor Hospital purchases $90,000 in surgical equipment on October 1, Year 1. The useful life is estimated to be 5 years, and t

AVprozaik [17]

Answer:

The depreciation expense for year 1 is $16,000

Explanation:

Depreciation: The depreciation was occurred due to tear and wear, obsolesce, time period, etc

Under the straight-line method, the depreciation should be charged with the same amount over the useful life.

The calculation is shown below:

= $\dfrac{(original\ cost - residual\ value)}{(useful \ life)}$

= $\dfrac{(\$90,000 - \$10,000)}{(5 \ years)}$

= $16,000

The depreciation should be charged for $16,000 in year 1. Moreover, it is shown in the income statement in the debit side and in the cash flow statement also.

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3 years ago

Texas Oil Company (TOC) paid $3,000,000 for an oil reserve estimated to hold 50,000 barrels of oil. Oil production is expected t

IrinaK [193]

Answer: Please see answer below

Explanation:

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Accumulated Depletion

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Oil Reserve

Year 1 =$3000000- $600,000=$2,400,000

Year 2, $3,000,000- $2,400,000=$600,000

Year 3= $3,000,000 -$3, 000,000=$0

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Year 1= $600,000

Year 2 $2,400,000

Year 3= $3,000,000

Year 1 Year 2 Year 3

Oil Reserve $3,000,000 $3,000,000 $3,000,000

Accumulated Depletion $600,000 $2,400,000 $3,000,000

Oil Reserve, $2,400,000 $600,000 $0

Net Oil Inventory $600,000 $2,400,000 $3,000,000

4 0

3 years ago