How to estimate the cost of a flight


Discussion : Costing Methods-Variable Costing

Read the following scenario and then thoughtfully discuss the questions.

The cost per seat-mile on a major U.S. airline is 24.1 cents. In order to estimate the cost of flying a passenger from Pensacola, FL, to Denver, CO, we should multiply 1,184 miles by 24.1 cents.

Discuss

•Do you agree or disagree? Explain your reasoning.

•What would you suggest to estimate the cost of a flight?

Response should be 250 Words.

 

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Cost Accounting: How to estimate the cost of a flight
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