As one of the pioneers in the low cost airline market, easyJet bases its business on a number of principles:

•Minimize distribution costs by using the internet to take bookings. About 90 per cent of all easyJet tickets are sold via the Web. This makes the company one of Europe’s largest internet retailers.

•Maximize efficient use of assets, by increasing turnaround time at airports.

•A ‘simple-service model’ means the end of free on-board catering.

•Ticketless travel, where passengers receive an e-mail confirming their booking, cuts the cost of issuing, distributing and processing tickets.

•Intensive use of IT in administration and management, aiming to run a paperless office.

Question 

1 How can the management accounting function provide information to support a low-cost strategy?