Sample Aviation Questions On Air Transport Economics & Finance

Homework Question on Air Transport Economics & Finance

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OPTIONAL: Reviewing the following videos may help you understand the information in the textbook:

1. ATE& AF: In your own words, briefly explain the following AND provide examples as indicated below using the balance sheets or other resources based on the company you have chosen for your final project. You may use either Fiscal Year 2014 or Fiscal Year 2013 examples.
   [5-points each]
   1. Historical Costs
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   2. Current Costs
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   3. Sunken Costs
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   4. Total Costs
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   5. Fixed Costs (provide two examples)
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   6. Variable Costs (provide two examples)
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   7. Marginal Costs (provide two examples)
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   8. Explicit Costs
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   9. Implicate Costs
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   10. Opportunity Costs
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   11. RASM
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   12. CASM
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   13. Startup Costs (provide two examples)
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   14. Production Costs (provide two examples)
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   15. Direct Operating Costs (provide two examples)
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   16. Indirect Costs (provide two examples)
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   17. Non-Operating Costs provide two examples)
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2.ATE: In your own words, briefly explain the following AND provide examples based on the company you have chosen for your final project. [5-points each]

1. Economies of Scale
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2. Diseconomies of Scale
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3. Economies of Scope
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4. Economies of Density
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3.ATE: Based on either Fiscal Year 2014 or Fiscal Year 2013, what are the top three cost factors for the company you have chosen for the final project? And what is the actual dollar amount of those costs for that year.  Indicate where you got the information from and the fiscal year you used to get this information[10-points]

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4.AF: For each of the following, very briefly discuss strategies that your chosen company has used. Please cite all sources you have used to research these answers.  Please contact Jon Helmke if you need help with researching the information for this.
If the company has not used these strategies, then discuss how they can use these strategies and discuss the implications of using such a strategy.  Is it in their best interest etc.  [10-points each]

1. Rebalancing and restructuring strategies
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2. Cost cutting strategies
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3. Productivity enhancement strategies
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4. Impediments to cost control strategies faced by the company
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Homework Answer on Air Transport Economics & Finance

1.ATE& AF: In your own words, briefly explain the following AND provide examples as indicated below using the balance sheets or other resources based on the company you have chosen for your final project. You may use either Fiscal Year 2014 or Fiscal Year 2013 examples.
[5-points each]

1. 1. Historical Costs
      These are the book value of an asset for which was recorded at the time of buying the asset less depreciation cost. the GAAP accepts the historical cost measurement to be in line with the principle of prudence. An example is the book value of a motor vehicle
   2. Current Costs
      These are the costs that could be incurred while trying to replace the whole context of operating assets and its current value. Notably it entails the cost of manufacturing, processing and finishing the product made by the asset in question until it becomes a finished product. The cost of replacing a plant is a current cost.3.Sunken Costs
      These are costs that are deemed irrelevant in decision making since once they are incurred they cannot be recovered by the firm. for example, the cost of installation of an information system within a company.