Canniff Air Uses Two Measures of Activity, Flights and Passengers

question 372

Multiple Choice

Canniff 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 $56,560 per month plus $2,618 per flight plus $5 per passenger. The company expected its activity in February to be 63 flights and 254 passengers, but the actual activity was 62 flights and 255 passengers. The actual cost for plane operating costs in February was $218,820. The plane operating costs in the planning budget for February would be closest to:

• A) $222,764
• B) $222,349
• C) $220,151
• D) $218,820

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Definitions:

Empower Subordinates

Providing lower-level employees with the authority and confidence to make decisions and take action in their roles.

Social Objectives

These refer to the goals or aims that benefit society as a whole, often focusing on issues like welfare, education, and environmental protection.

Key Trait

A distinguishing characteristic or quality that contributes significantly to the behavior, abilities, or performance of an individual.

Effective Leadership

The ability to guide, direct, or influence people in a way that achieves organizational goals.