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a) Variable costs: Remuneration of flight attendants, Meals and drinks onboard, Fuel.
Fixed costs: promotions and Advertising, Remuneration of administrative staff and Airport charges.
Subtract one mark for each pair of errors.
b) Application and Definitions of differences between indirect costs and direct costs. A direct cost is purposely related to a particular flight. For a flight on a basic airline carrier, the catering costs are considered to be direct costs. Indirect costs are not directly linked with a particular flight, e.g. insurance costs and advertising.
a) Complete the table for the expenses of producing wooden toy trains:
b)
i. Graph
ii. Graph
c) AC falls from $25 per unit to $9.0 and then rises again to $9.7. This is representative of the pattern of diseconomies and economies of scale experienced by firms as they produce increasing levels of output.
d) Reasons might include a lack of working capital to exploit economies of insufficient or scale demand to justify producing at the optimal level of output. Full explanation needed for maximum marks.
Refer to the Bulldog battery company's cash budget in Table 18-7. Explain why the company would probably not issue $1 million worth of new common stock in January to avoid all sho
APPLICABILIYI OF THE OPERETING CYCLE
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