Gershon Air Uses Two Measures of Activity, Flights and Passengers

question 289

Multiple Choice

Gershon 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 $38,720 per month plus $2,061 per flight plus $9 per passenger. The company expected its activity in June to be 76 flights and 238 passengers, but the actual activity was 75 flights and 239 passengers. The actual cost for plane operating costs in June was $196,310. The spending variance for plane operating costs in June would be closest to:

• A)$864 F
• B)$1,188 U
• C)$1,188 F
• D)$864 U

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Definitions:

Group Development Process

A sequence of stages that groups typically go through, including forming, storming, norming, performing, and adjourning.

Group Development

The stages or phases that a group goes through as it progresses from forming to performing, including norming and storming stages.

Conflict Resolution

Conflict resolution refers to the methods and processes involved in facilitating the peaceful ending of conflict and retribution.

Degrees Of Acceptability

Refers to the range or spectrum within which ideas, behaviors, or actions are deemed acceptable or tolerable by a group, organization, or society.