Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 25

Identify what are likely to be variable costs for an airline such as Southwest Air. Also, what are the fixed costs likely to be?

Step 1 of 3

Cost:

Cost refers to the expenditure incurred to manufacture product or provide a service. Since a number of cost are incurred during production process these costs are required to be bifurcated based on their usage, frequency etc.

Cost are divided into fixed cost and variable cost.