AMA - Practice manual Jan 16 edition.
In Q.4, (Pg. 6.12) they have considered Fuel cost to be variable.
In Q.5, fuel cost is considered fixed.
What is the correct approach ?
Also in Q.5 (iii) Did not understand cost for snacks....
Please guide.
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CA Final Costing - Costing of service sector
Replies (2)
fuel cost to be considered as SVC because its given flight wise just like SVC for lotwise
cost for snacks is variable cost because its given in per passenger
according to ques cost of snacks not charged from passenger means separately not charged from passenger i.e. cost of snacks included in fare
cost for snacks is variable cost because its given in per passenger
according to ques cost of snacks not charged from passenger means separately not charged from passenger i.e. cost of snacks included in fare
Fuel cost is always variable because it depends on running basis....
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