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Management Accounting in JetBlue

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Added on  2020-05-16

Management Accounting in JetBlue

   Added on 2020-05-16

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Running head: MANAGEMENT ACCOUNTINGManagement AccountingName of the Student:Name of the University:Author Note
Management Accounting in JetBlue_1
1MANAGEMENT ACCOUNTINGTable of ContentsDiscussion Paper 1....................................................................................................2Answer to Question 1................................................................................................2Answer to Question 2................................................................................................3Answer to Question 3................................................................................................4Answer to Question 4................................................................................................5Answer to Question 5................................................................................................5References.................................................................................................................7
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2MANAGEMENT ACCOUNTINGDiscussion Paper 1Answer to Question 1 ParticularsDeltaJetBlueSalary Cost:Highest1,607,000,00049000000Lowest1,037,000,00016000000Range570,000,00033,000,000Revenue Passenger Mile:Highest218000002016200Lowest14000000599400Range7,800,0001,416,800Variable Expenses73.0769230823.29192547Fixed Expenses13923076.922038819.876Cost function 73.08x+1392307623.29x +2038820The conclusions that can be derived from the comparison of both the costfunctions are that the fixed costs of Delta appear to be high in comparison to thatof JetBlue. This indicates the fact that the firm should consider reducing the costsof production to increase the total revenue incurred. The fixed cost however, that isincurred by JetBlue is less in comparison to Delta. The variable cost that isincurred by the firm is also less. This evidently indicates the fact that the cost forproducing the specified services by JetBlue has been low. A cost function refers tothe total cost that is incurred by a firm when the quantity of production has beenspecified. The driver however, in the mentioned question is Revenue PassengerMiles. The comparisons that can be made out of the different cost functions is thatJetBlue operates at a significant less cost in comparison to Delta.
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