Sterr Air Uses Two Measures of Activity, Flights and Passengers

question 198

Multiple Choice

Sterr 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 $49,340 per month plus $2,635 per flight plus $2 per passenger. The company expected its activity in January to be 73 flights and 191 passengers, but the actual activity was 75 flights and 193 passengers. The actual cost for plane operating costs in January was $246,440.
-The plane operating costs in the planning budget for January would be closest to:

• A)$247,351
• B)$246,440
• C)$239,868
• D)$242,077

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Definitions:

Published Standards

Officially recognized criteria or benchmarks for the quality and safety of products, services, or practices.

Professional Standards

Guidelines and criteria established by professional bodies that outline the ethical and performance expectations for professionals in a specific field.

Patient Input

The involvement of patients in making decisions about their own healthcare, including treatment choices and care planning.

Total Fat Intake

The sum of saturated, unsaturated, and trans fats consumed in a person's diet, affecting overall health and risk of diseases.