Which of the following are most likely to be fixed costs of an airline? Select TWO that apply.
A.
Purchase of aircraft
B.
Catering services
C.
Advertising and promotion
D.
Flight crew training
E.
Fuel
The Answer Is:
A, D
This question includes an explanation.
Explanation:
Fixed costs (FC) are costs that do not vary with volume. To an airline once aircraft are purchased, flight crews trained and departures scheduled, costs are disproportionately fixed.
Variable costs (VC) are those which vary with the amount produced. Fuel, catering services and marketing are examples of variable.
LO 2, AC 2.1
L4M5 PDF/Engine
Printable Format
Value of Money
100% Pass Assurance
Verified Answers
Researched by Industry Experts
Based on Real Exams Scenarios
100% Real Questions
Get 65% Discount on All Products,
Use Coupon: "ac4s65"