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acct - As it will charge the more cost for the longer...

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Domestic International Ticketing 1000000 3000000 Baggage Handling 500000 1500000 Aircraft Maintenance 1500000 4500000 Total cost allocated 3000000 9000000 The basis of cost allocation should be selected which is the most influential. If the miles are influential then the cost should be allocated on the basis of mileage.
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Unformatted text preview: As it will charge the more cost for the longer journey. The other suitable basis for allocating ticketing cost may be number of passengers , for baggage handling the weight seems more appropriate basis of allocation and for maintenance one can use machine hours or labor hours....
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