Management Accounting College Case Study Example | Topics and Well Written Essays - 1000 words

Management Accounting College - Case Study Example Most incumbents at the time of the entry of Southwest Airlines are showing small profits because of low consumer demand, high operation and maintenance costs. However, Southwest Airlines' introduction of a new business model significantly altered this situation. It can be recalled that deregulation has lowered the barrier to entry in the industry as well as enhanced the competitiveness of the players which are previously receiving subsidy from the government. This, in turn, largely contributes to the cost efficiency of airline operators allowing them to charge lower prices to passengers. A low cost carrier like Southwest Airlines typically adopts a business model which offers only a single passenger class and a single type of airplane which allows the company to cut on training and servicing costs. Budget airlines also typically employ a very simple fare scheme which rewards early reservation by increasing the fare charged as the plane fills up. There is usually no reserved seating in order to allow customers to choose their own seats thereby encouraging early and quick boarding (Sorensen 2006). In order to drive down operation costs, technological innovation particularly the internet is used in order to eliminate the huge commission usuall y passed on to travel agencies. Budget airlines also prefer flying on secondary and simplified routes as well as having relatively shorter flights and faster turnaround times. Budget airlines, unlike larger air companies usually skip in-flight catering and other complimentary services replacing this with optional paid-for-in-flight food and drinks. In order to insulate themselves from future increases in oil prices, budget airlines often undertake aggressive fuel hedging, that is, "making advance purchases of fuel at a fixed price for future delivery" (Fuel Hedging 2006). The operation of an airline necessitates the investment in capital which includes the planes, and ports among others. Southwest Airlines also recruited pilots, stewardess, and staff which will run the operation. The company also pays mechanic for the maintenance of its fleet. Looking the company's cost structure; it incurs both direct and indirect costs in order to keep the business running. The fixed costs associated with Southwest Airlines' operations include the monthly maintenance of the mechanic, the insurance paid for its fleet, the expenses associated with the leased properties like the airport, electricity expenses in its offices, and even the rent expense that it pays for its booking premises. These fixed costs can be seen as indirect expenses because they cannot be necessarily identified with a specific product or value (Garrison et al, 2007). These costs are incurred as the air carrier operates and are very significant to keep it in business. However, they cannot be direc tly linked to the specific process of product and process costs. In its daily operations, Southwest Airlines shoulders operations cost. As opposed to business organizations which can directly identify the costs associated in creating a product which is suitable to a specific customer order or requirement, Southwest Airlin

Class Relationships in US Essay Example | Topics and Well Written Essays - 500 words

Class Relationships in US - Essay Example This war turned out to be the biggest war in the history of the world, named as Civil War (Tripp). Civil war was the longest war to be fought; it took five years for American authorities to overcome this war. The central point of this war was the slavery system of black people, and the domination of white people. Civil war pushed America to reconstruct the whole nation of America by bringing them together. The nation’s unity and the new laws regarding the system of replacing slavery and the status of slaves took into consideration. The slavery system was abolished and the black people were given the freedom to utterly claim their-selves as the citizens of America, likewise the whites. The African American identity was allotted to the black nation of US. The blacks were given equal rights to contribute in the elections by voting for their preferred leader, by the US government. The statuses of the slaves were taken care of by giving four million of them the identification of being called as American citizens. Civil war stood out the nation power more superior to the state g overnment. After the Civil War, US nation endured unity and the US quickly became the primary economic power in the world. When we see the US today, it gives us the clear picture of a complete new reformed America. Zero class discrimination is being seen. There is seen to be a strong & equal bounding between blacks and whites. After the coming of Barack Obama the place of class has been changed. The coming of African American President is the proof of present class status of America. Laws are developed in the favor of blacks, for the protection of their rights. With time white has started to equalize themselves with Blacks, but on the basis of religion the issue is still in light. Slavery of Black people has overcome finely. We can see blacks in every industry. Blacks are much motivated to join US army, Hollywood & politics. Blacks are treated equally as