Embry MBAA517 4.4 – Case Study 2: Classifying Costs

QUESTION

In
this module you will have an opportunity to demonstrate your
understanding of mixed costs and their application in the aviation
industry. .instructure.com/courses/23183/files/3032814/preview” alt=”case_study.jpg”>For this Case Study, complete the three requirements below:
ABC Airlines has calculated the total costs (fixed and variable) for
the passenger service flights between Los Angeles, California and
Orlando, Florida. The two methods used were the high-low method and the
least squared method. Compare and contrast these two methods. Which one
is the most reliable? What affect does an outlier have on the high-low
method? Which method would you recommend to ABC?List and discuss ten possible cost drivers for an aircraft manufacturing firm.Refer to Case 6-46 at the end of Chapter 6.
Compute requirement 2, except you can build or use an existing Excel
Spreadsheet to calculate the fixed and variable costs of the airport’s
cost behavior pattern.Also, complete requirement 4. The spreadsheet must accompany the submission.
For this case study, you will demonstrate your ability to correctly
calculate the problem and demonstrate creative thinking by analyzing the
case and answering the questions that are intended to interpret the
data Please refer to the case study section of the syllabus for
additional guidance and your Case Study Rubric to review the criteria
that will be used to evaluate and grade your submission.This activity
is due the last day of this module. If you have chosen to complete this
activity as a group assignment (optional), one member of the group will
submit the assignment. Include the names of all participating group
members in the top left corner of the first page of the document.

ANSWER:

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