Chapter 14, Problem 4E

Exercise 14-4 Cost classifications for a service company C2

Listed below are costs of providing and airline service. Classify each cost as (a) either variable (V) or fixed (F), and (b) either (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	Variable or Fixed	Direct or indirect
Advertising………………
Beverages as and snacks………………
Regional vico prosident salary……………….
Depreciation (Straight-lion) on ground equipment……………..
Foul and used in planes………………..
Flight attendant wages…………
Pilot wages………………..
Aircraft maintenance manager salary……………
Customer service salaries……………