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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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Krasel Corp. exchanges equipment in a transaction that has commercial substance. The original cost of the asset surrendered was

devlian [24]

Answer:

All options are applicable

Explanation:

Upon the exchange of the asset, the cost of the old asset needs to be removed from the asset account by crediting the old asset account with $90,000

On the other hand, the market value of the new asset needs to be debited to new asset account i.e$50,000 and also the accumulated depreciation must debited to accumulated depreciation account.

All in all, the difference between the credit and the debit entries is balancing credit as shown below

Dr New asset $50,000

Dr Accumulated depreciation $70,000

Cr Old asset $90,000

Cr gain on asset exchange(bal figure) $30,000

3 0

4 years ago

Read 2 more answers

The following data are from the accounting records of Niles Castings for year 2: Units produced and sold 80,000 Total revenues a

Kruka [31]

Answer:

Gross Margin = $ 115,000 Contribution Margin= $ 144,500

Explanation:

Nile Castings

Income Statement

Year 2

Sales Revenue $ 270,000

Direct Materials $63,000

Direct Labor $ 33,000

Variable Manufacturing Overheads $ 18,000

Fixed Manufacturing Costs $ 41,000

Gross Margin $ 115,000

Less Marketing & Administrative Costs

Fixed Marketing Costs $ 38,000

Variable Marketing Costs $ 11,500

Net Profit $ 65,500

Nile Castings

Income Statement Under Absorption Method

Year 2

Sales Revenue $ 270,000

Direct Materials $63,000

Direct Labor $ 33,000

Variable Manufacturing Overheads $ 18,000

Variable Marketing & Administrative Costs $ 11,500

Contribution Margin $ 144,500

Less Fixed Costs

Fixed Manufacturing Costs $ 41,000

Fixed Marketing Coss $ 38,000

Net Profit $ 65,500

3 0

3 years ago

"A brokerage research department has been following the common stock of Acme Corporation and has prepared a favorable research r

Anna71 [15]

Complete question reads;

"A brokerage research department has been following the common stock of Acme Corporation and has prepared a favorable research report on the company. The brokerage firm is a member of a syndicate handling an issue of Acme common stock that is currently in registration. A registered representative wishes to send the research report to all of his customers. Which statement is TRUE?"

A. The report can be sent only if it has been approved by a supervisory analyst

B. The report can be sent only if it is accompanied or proceeded by, a preliminary prospectus.

C. The report can be sent only if it has been approved by the branch office.

D. The report cannot be sent until registration is effective.

Answer:

D. The report cannot be sent until registration is effective.

Explanation:

Usually, under the guidelines of the Securities Act of 1933, no offer can be made to the customer unless a final registration has been made and effected by means of a prospectus.

Thus, the report cannot be sent until registration is effective..

7 0

4 years ago

A new manufacturing machine is expected to cost $278,000, have an eight-year life, and a $30,000 salvage value. The machine will

oksano4ka [1.4K]

Answer:

C) 4.2 years

Explanation:

The computation of the payback period is as follows;

As we know that

Payback Period = Initial cost ÷ Annual net cash flow

Here

Initial cost = $278000

Annual net cash flow = Incremental after tax + Depreciation per year

where,

Depreciation per year = (Original cost - Salvage value) ÷ Estimated Life

= ($278,000 - $30,000) ÷ 8 years

= $31,000

Annual net cash flow is

= $35000 + $31000

= $66000

So,

Payback Period is

= $278000 ÷ $66000

= 4.2 Years

4 0

4 years ago

An example of strategic planning is:

My name is Ann [436]

Answer:

A) Deciding where to locate a new manufacturing plant

Explanation:

Strategic planning is the process in which the company sets its goals for the future, and makes plans to achieve those goals.

Strategic planning is therefore, a process focused on the future, not on daily activities, and is usually the main job of the CEO.

Deciding where to locate a new manufacturing plant is an example of strategic planning because expanding manufacturing capacity is a form of planning growth for the future of the firm.

7 0

3 years ago