Keenan Cummings
AVSC 3020
Applying CVP to the Aviation Industry
Contribution Income Statement
Sales of 5 Aircraft
Sales (5 aircraft)
Total
Per Unit
$ 950,000
$190,000
Variable Expenses
285,000
Contribution Margin
665,000
Fixed Expenses
300,000
Net Operati
AVSC 3320 X1
Managerial
Accounting in
Aviation
JetBlues 2010 10-K report
Jeff Rodeback
JetBlues success as a US domestic and short-haul international airline is credited in
large measure due to their careful planning and management techniques. Among these
Question 1
1 / 1 pts
What is the third step in implementing activity-based costing?
Assign overhead costs to cost objects using the activity rates and activity measures
Prepare management reports
Correct!
Calculate activity rates
Define activities, activi
Question 1
Which of the following is improved by increasing selling prices, reducing operating expenses, or
increasing unit sales?
Margin
Turnover
Operating income
Operating assets
Question 2
Which of the following are advantages of decentralization?
Empo
Keenan Cummings
AVSC 3320
Job Order vs. Process Costing
Jobs 1-4
First Quarter Predetermined Application Rate:
$100,000.00 / 2,500 HRS = $40.00
First Quarter Manufacturing:
390 total HRS x $40.00 = $15,600.00
Depreciation $1,000.00
Ind. Labor.$4,500.00
In
Keenan Cummings
Instructions
Use the information below to prepare an income statement using both variable and
absorption costing methods. You will need to complete "Absoprtion Costing Unit Product
Cost" in order to complete both income statements. Be sure
Keenan Cummings
Instructions:
In this assigment you will create a series of budgets for Wolverine Manafucturing,
an aircraft manufacturing company. Below you will find the information you need
to create each budget. To the right you will find a template f
Keenan Cummings
AVSC 3320
March 6, 2016
Activity Based Costing
1. Calculate the material handling rate that would have been used based on the traditional
allocation.
Total Government and Non-Government direct materials: $4,200,000.
total Government and No
7.1 Reading Review
Question 1
High variable costs and low fixed costs is the best type of cost structure.
True
False
Question 2
If Acoustic Concepts wants to achieve a $40,000 target profit, their unit contribution margin is $100,
and the fixed expense is
Keenan Cummings
AVSC 3320
Load Factors
The breakeven load factor in the aviation industry is a percentage calculation of how many
seats are filled at a particular price relative to the operating cost of the flight; a certain
percentage (depending on the a
4.1 Reading Review
Question 1
The average fixed cost per unit becomes progressively larger as the level of activity increases.
True
False
Question 2
Which type of income statement organizes costs into 'cost of goods sold' and 'selling and
administrative e
5.1 Reading Review
Question 1
Which of the following is computed by dividing the total estimated manufacturing overhead cost for
the period by the estimated total amount of the allocation base?
Predetermined overhead rate
Allocation base
Indirect cost
Ove
6.1 Reading Review
Question 1
What terms is defined as direct labor cost plus manufacturing overhead cost?
Equivalent units
Conversion cost
Weighted-average
FIFO
Question 2
Which of the following are similarities of job-order costing and process costing?
1.1 Reading Review
Question 1
Which tool is used in the controlling process to compare budgeted data to actual data in an effort to
identify and learn from excellent performance and to identify and eliminate sources of unsatisfactory
performance?
Performa
JETBLUE AIRWAYS CORP
(JBLU)
10-K
Annual report pursuant to section 13 and 15(d)
Filed on 02/25/2011
Filed Period 12/31/2010
Table of Contents
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
x
ANNUAL REPORT PURSUANT TO SEC
Question 1
Which of the following are ways to increase the capacity of a bottleneck?
Focusing business process improvement efforts on the bottleneck
Subcontracting some of the processing that would be done at the bottleneck
Getting rid of machines at the
Question 1
Which of the following are common errors in preparing performance reports?
Assuming there are multiple cost drivers
Assuming that all costs are fixed
Assuming there is one cost driver
Assuming that all costs are variable
Question 2
To generate
Question 1
2 / 2 pts
What is the difference between how much a cost should have been, given the actual level of
activity, and the actual amount of the cost?
Activity variance
Revenue variance
Correct!
Spending variance
Question 2
2 / 2 pts
Which of the fo
Question 1
1 / 1 pts
Which budget allows the company to develop plans to adjust the labor force as the situation
requires?
Correct!
Direct labor budget
Manufacturing overhead budget
Merchandise purchases budget
Direct materials budget
Question 2
1 / 1 pts
Question 1
1 / 1 pts
In which method to estimate fixed and variable components of mixed cost is an account classified
as either variable or fixed based on the analyst's prior knowledge of how the cost in the account
behaves?
Least-squares regression metho
Question 1
1 / 1 pts
The Manufacturing Overhead account operates as which of the following?
Correct!
Clearing account
Work in process
Nonmanufacturing costs
Applied overhead
Question 2
1 / 1 pts
How are manufacturing overhead costs assigned to Work in Pro
Question 1
2 / 2 pts
When the products are completed in the last department, their costs are transferred where?
Work in process
Next department
Equivalent units
Correct!
Finished goods
Question 2
2 / 2 pts
What is the organizational unit where work is per
3.1
Question 1
1 / 1 pts
Which of the following are categories of customer value propositions?
Measurement skills
Correct!
Customer intimacy
Risk management
Correct!
Operational excellence
Correct!
Product leadership
Question 2
1 / 1 pts
Which term is use
Question 1
1 / 1 pts
If customer orders are insufficient to keep the workers busy, what are the work center manager's
options?
Correct!
Accept an unfavorable labor efficiency variance
Correct!
Build inventory
Downsize workforce
Minimize inventory
Question
Question 1
1 / 1 pts
Which term refers the the relative proportion of fixed and variable costs in an organization?
Margin of safety
Correct!
Cost structure
Operating leverage
Sales mix
Question 2
1 / 1 pts
You get exactly the same answer whether you use t
Question 1
3 / 3 pts
A credit to the cash account will _ the balance in the account.
have no effect on
Correct!
decrease
increase
Question 2
3 / 3 pts
The $20 entry (from the previous question) must be balanced in the accounting equation. Which
of the fol
Question 1
Research and development and product design are examples of what type of costs in a value chain?
Traceable
Downstream
Common
Upstream
Question 2
Under variable costing, fixed manufacturing overhead is treated as which of the following?
Common c
Question 1
Which of the following is developed using data from the balance sheet from the beginning of the
budget period and data contained in various schedules?
Cash budget
Budgeted income statement
Ending finished goods inventory budget
Budgeted balance
Question 1
All variances are worth investigating.
True
False
Question 2
Which of the following are standards that should be set for direct labor?
Price per unit
Rate per hour
Quantity per unit
Hours per unit
Question 3
Which of the following are advantage
Question 1
What is the first major step in implementing activity-based costing?
Calculate activity rates
Assign overhead costs to cost objects using the activity rates and activity measures
Define activities, activity cost pools, and activity measures
Pre
Break-Even
The break-even load factor is what every airline has and uses. It is simply measured by a
percentage of airline seats that must be sold in order to to be given a yield or to cover its costs to
avoid losing money. When determining the break-even
2010
Dear Fellow Shareholders,
To celebrate the tenth anniversary of our first flight, I visited every JetBlue location in 2010, meeting
thousands of crewmembers, customers and investors. It was a year marked by significant change, not only
in our industr
Ratio Analysis for: Jetblue
Ratios
Formula
Year
2012
Current Assets
Current Liabilities
1,100
1,608
Current Assets - Inventory
Current Liabilities
1,064
1,608
Sales
Total Assets
4,606
7,070
Total Liabilities
Total Assets
7,070
7,070
Earnings Before Intere
Stock A will return a rate of 12% in a recession, 15% in normal conditions and 18% duri
Scenario
Rate of ReturnExpected Retur Deviation from Expected Retu
1
2 (3) = (2) - (1)
Recession
12.00%
15.00%
3.00%
Normal
15.00%
15.00%
0.00%
Boom
18.00%
15.00%
3.00
