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

question 81

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 focused 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:

Payroll Costs

The total amount of wages, salaries, and other compensation a business pays to its employees.

Accounting Costs

Costs recognized in the financial statements, consisting of both explicit costs like wages and materials, and allocated costs such as depreciation.

Allocated

Refers to the distribution or assignment of resources, costs, or expenses to various departments, projects, or activities.

Over Budget

A situation in which actual spending exceeds the planned or allocated budget.