Hirons Air Uses Two Measures of Activity, Flights and Passengers

question 207

Multiple Choice

Hirons Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $56,840 per month plus $2,874 per flight plus $13 per passenger. The company expected its activity in November to be 86 flights and 255 passengers, but the actual activity was 89 flights and 257 passengers. The actual cost for plane operating costs in November was $305,100. The spending variance for plane operating costs in November would be closest to:

• A) $2,219 U
• B) $10,867 U
• C) $10,867 F
• D) $2,219 F

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Definitions:

Brand Visibility

The extent to which a brand is seen or recognized in its market by potential customers, often enhanced through marketing and advertising efforts.

Social Interactions

The ways in which individuals communicate and behave towards each other within a society.

Spam

Unsolicited and often irrelevant messages sent over the Internet, typically to a large number of users, for the purpose of advertising, phishing, spreading malware, etc.

Unsolicited

Refers to anything that is not explicitly requested by the receiving party, often used in the context of advertising or emails.