Listed below are costs of providing an airline service. Classify each cost as (a) either variable (V) or fixed (F) and (b) either direct (D) or indirect (I). Consider the cost object to be a flight. Flight attendants and pilots are paid based on hours of flight time. Cost 1. Advertising 2. Beverages served on planes . 3. Regional vice president salary . 4. Depreciation (straight-line) on ground equipment . 5. Fuel used in planes 6. Flight attendant wages 7. Pilot wages . 8. Aircraft maintenance manager salary .
Listed below are costs of providing an airline service. Classify each cost as (a) either variable (V) or fixed (F) and (b) either direct (D) or indirect (I). Consider the cost object to be a flight. Flight attendants and pilots are paid based on hours of flight time. Cost 1. Advertising 2. Beverages served on planes . 3. Regional vice president salary . 4. Depreciation (straight-line) on ground equipment . 5. Fuel used in planes 6. Flight attendant wages 7. Pilot wages . 8. Aircraft maintenance manager salary .
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Listed below are costs of providing an airline service. Classify each cost as (a) either variable (V) or fixed
(F) and (b) either direct (D) or indirect (I). Consider the cost object to be a flight. Flight attendants and
pilots are paid based on hours of flight time.
Cost 1. Advertising
2. Beverages served on planes .
3. Regional vice president salary .
4.
5. Fuel used in planes
6. Flight attendant wages
7. Pilot wages .
8. Aircraft maintenance manager salary .
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