If an Airline Determines That Food Quality Is Not One

question 3

Multiple Choice

If an airline determines that food quality is not one of its core competencies, it should

• A) improve the quality until it becomes a core competency
• B) neglect food service in favor of focusing on other core competencies
• C) look to accent its financial strength
• D) it should sell its brand image

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Definitions:

Period Costs

Expenses on an income statement that are not directly tied to the production of goods or services, such as sales, general, and administrative expenses.

Product Costs

Costs directly associated with the production of goods sold by a company, including materials, labor, and overhead.

Input Cost Changes

Variations in the cost of materials and services used in the production of goods or services over time.

Current Cost Accounting

An accounting approach that records assets and liabilities at their current market value rather than their historical cost.