The airline see where money is being spent and

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the airline see where money is being spent and provide ways to cut costs or re-evaluatespending to maintain higher profitability.One strategic answer that a managerial accountant can help with is to see if acertain city the airline operates in is profitable or not. The accountant could come upwith different operating expense tables that show where the allocated money for thatparticular location is being allocated. They could create a table that shows how muchcustomers are spending on tickets and compare that figure to how much it costs for theairline to occupy the space, pay employees, pay for fuel, and other operating expensesrelated to day to day business.Research would be a necessity for any managerial accountant to provide thecompany’s leadership with the data they seek. This includes conversing with otherfinancial departments. Time would need to be spend establishing worksheets or graphs
to organize the information collected to show monetary usage. This is also known as aperformance report.All of this information is what the executives need to know even despite it notalways being positive. Managerial accountants have to dig within the company to findthe answers to hard questions. This job is vastly important to business success, which iswhy their focus is on decisions that ultimately affect the future of the company.
ReferencesJetBlue Airways Corp Annual Report[PDF]. (2011).Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2015).Managerial accounting(15th ed.).New York: McGraw-Hill Education.
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Term
Spring
Professor
CoryChamberlain
Tags
Accountant, Lufthansa

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