Strategic Analysis of Flyme Inc.: Costing, Budgeting, and Performance

This report examines Flyme Inc., a UK airline company, focusing on strategic management accounting. It critically compares three costing methods—absorption, variable, and marginal costing—to aid in understanding and reducing direct costs. The report then contrasts two budgeting methods with Flyme Plc's current incremental budgeting approach to identify strategies for overhead reduction, highlighting the value proposition and zero-based budgeting. Finally, it evaluates how Flyme Plc can leverage the Balanced Scorecard to enhance overall company performance. The analysis emphasizes the importance of choosing appropriate costing and budgeting techniques for improved financial outcomes and strategic decision-making within the airline industry.