From the course: Accounting Foundations: Cost-Based Pricing Strategies
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Which airline passengers create overhead costs?
From the course: Accounting Foundations: Cost-Based Pricing Strategies
Which airline passengers create overhead costs?
- We've flown together on airplanes. - Yeah, in fact we flew down here together. - You seem pretty well-behaved on an airplane. - I am but anyone who has flown on a plane knows that not all passengers consume the same amount of flight attendant overhead. - Exactly, some passengers do as we do. They sit quietly. They make no special requests. They create no mess. And they drink and eat what they are given. - In other words, if all passengers were like us each flight would need just one flight attendant to close the door at the start of the flight and to open the door at the end of the flight. - Now of course this ignores the important safety functions that flight attendants perform during emergencies. - Okay agreed, but just from a routine customer service standpoint, if all passengers were like us, you and me, just one flight attendant would be needed. - Actually if the airline would train us then we could close and…
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