Your Boss, Penny Dirks, Has Asked You to Analyze the Airline

question 129

Multiple Choice

Your boss, Penny Dirks, has asked you to analyze the airline industry using Porter's three generic strategies. Which of the following companies are using a cost leadership strategy?

• A) Southwest, Horizon, Frontier, JetBlue.
• B) British Airways, Singapore Airlines, Virgin Atlantic.
• C) Sky Taxi - a rent by the hour personal plane service.
• D) All of the choices are correct

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Definitions:

Revenue Recognition

The accounting principle that outlines the specific conditions under which revenue is recognized as earned and can be reported on financial statements.

Contract Price

The total agreed upon amount to be paid for goods or services as specified in a contract.

Percentage-Of-Completion Method

is an accounting technique used to recognize revenue and expenses of long-term contracts proportionally as the work is completed.

Revenue Recognition

The accounting principle that dictates the conditions under which revenue is recognized and how to measure the amount to be recorded.