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How do fixed costs and variable costs apply to the airline industry?
Wiki User
∙ 12y ago
Fixed costs: Rent of buildings, lease payments, maintenance of property, insurance, utilities. Variable costs: Fuel, salary of crew, passenger refreshments, costs related to ground handling, etc.
Wiki User
∙ 12y ago
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What are some variable costs of running an airline?
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What are examples of fixed and variable cost in an airline company?
Some of the Variable costs are Fuel Cost, energy, and operating cost
What is the nature of costs in the airline industry?
Costs in the airline industry include equipment, maintenance, fuel, rent and personnel. An often overlooked expense is the cost of using airports. The airlines pass this amount on with ticket prices.
Are variable costs included in operating costs?
Variable operating costs + fixed operating costs = total operating costs.
What things do variable costs include?
Variable costs vary depending on a company's production. Production, or output, and costs are included in variable costs. Production and costs are directly related.
What is the difference between average total costs and average variable costs?
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
Are selling costs variable costs?
If selling costs varies with production level then selling costs are variable costs but if they remain fix then these are fixed costs.
What is the profit margin in owning a bowling alley?
There isn't a definitive profit margin. Just like in the restaurant industry, there are variable costs, such as labor, utilities, food costs and such as well as fixed costs, such as land, equipment.
Examples of semi variable direct costs?
An example of semi variable direct costs is wages. Since semi variable costs are partially fixed and variable, regular labor is fixed costs, as production rises and workers have overtime the overtime is considered the variable cost.
Would you consider airline fuel cost as a fixed or variable cost?
With respect to the number of passengers on an aircraft, fuel cost should be mixed, i.e. a combination of fixed costs and variable costs. However, since the number of passengers on an aircraft have little effect on its overall weight, the variable portion would be small, and the cost will be mostly fixed. With respect to the number of miles flown, aircraft fuel cost would be variable.
Under variable costing variable selling and administrative costs are included in product costs?
No. They are not.they are part of period costs.
Are all direct cost are variable?
Yes generally direct costs are variable costs but there may be some direct costs which can be fixed costs as well.
