Question

"Pick an organization within the airline industry that you are familiar with or interested in learning about. Identify an example of when a favorable cost variable would not be good news for the performance of the organization"

Answer 1

Answer:

Pick an organization within the airline industry that you are familiar with or interested in learning about. Identify an example of when a favorable cost variable would not be good news for the performance of the organization.

What department would be responsible for the variance? What would you recommend to correct the variance? Explain your reasoning.

Explanation:

In the Jet airways example, if the package price stays the same or higher but gettting a positive variation, good news are fake as this means that the number of passengers that were expected to travel, in fact diminished.