ACC Project
- Complete the Critical Thinking Problem A6-72 "Cost Behavior and Air Force One"
Lal Ao-i'Z Cost behavior and Air Force One E {Learning Objectives 1, 2, a a) In a government report in 201 2,1 it was estimated that Air Force Cine costs the taxpayers $1?9.?5l1 per hour. Air Force One is a custom-built Boeing F4? for the president's use while in oFiice. [There are technically a few planes that are used as Air Force Cine: whichever one the president is on is called \"Air Force Dne.'i 1II'II'hile the president is in oFce. the presldent Is required by Iain.I to use Air Force ne for all air travel. The 1'4? used for Air Force Cine has 4.0m square feet of space inside on three levels. In eddion to having a large ofce and a conference room, the plane also houses a medical suite and a doctor. The doctor is permanently assigned to Air Force lCline. The plane has two food prep- aration galleys 'iat roan feed me people at a lime. There are also quarters on line plane fu' those people who travel with the presldent. Including senlor advisers. Secret Senrioe. and the press. In arldilionJ several cargo jets typically are used to carry extra provisions, people, and equipment. The SITETEU cost per hour estimate Includes fuel. maintenance. engineerlng support. repairs, food and lodging for the pilots and crew, and other costs. it also includes the cost of rnllitan.r staing for the onlooard cornrn unicatlons equipment. The cost may also Include the costs of flying extra aircraft and costs oi= advance scouting trips to the destination to maize sure that everythlng goes as planned. \"Presidential Travel: Policy and Costs.\" Congressional Heseuch Service. retrieved from Wmfaaorgrsgpi'crsr' urn-n..- n." .- 33B CHAPTER 6- When Air Force One is used for oFcial business. the taxpayers must pay for the traveling costs for the president's immediate family, Secret Service detail, and the White House staff who are traveling with the president. When Air Force lDne is used for political purposes, the president's rnpaign fund is re- quired to reimburse the government For the poet of food, lodging, and other related expenses. The Empaign fund must also reimburse the government for the amount that is the equivalent of airfare that wmld have been paid if a commercial airline had been used. The same reim- bursement policy is in effect for trips that are tegorized as personal trips; the president must reimburse the government for the cost of food. lodging. comparable airfare, and other related expenses. Questions 1. Is the \"WEED cost per hour a fixed. variable, or mixed cost? Explain. 2. Exact details about the oost oomposition of the Air Force Itine travel are kept secret to protect the president. Use your imagination, and the reading above, to make a list of the oosts that you think might be included in $1??.?5 per hour oost estimate. 3. Categorize each oost in your list as xed. variable. or mixed. 4-. The number of trips talten by the president in any given year fluctuates and is dependent upon the political climate. crises. economics. and the lilce. How useful do you think this cost per hour is? 5. lil'il'l'IEIt purpose{s]l can the $1?9,?5 cost per hour he used for? Are there any purposes for which that cost is not representative of the "true\" cost? s. Can you think of a better way so representl'oommunicate the cost of Air Force One? T. Do you think the reimbursement policy is fair to the president? Why or why not? 5. Do you think the reimbursement policy is fair to the taxpayers? Why or why not? A6-72 Name: _____________________________________________________ Question 1 Is the $179,750 cost per hour a fixed, variable, or mixed cost? Question 2 2. Exact details about the cost composition of the Air Force One travel are kept secret to protect the president. Use your imagination, and the reading above, to make a list of the costs that you think might be included in the $179,750 per hour cost estimate. Question 3 Categorized each cost in your list as fixed, variable, or mixed. Question 4 4. The number of trips taken by the president in any given year fluctuates and is dependent upon the political climate, crises, economics, and the like. How useful to you think this cost per hour is? Question 5 5. What purpose(s) can the $179,750 cost per hour be used for? Are there any purposes for which that cost is not representative of the \"true\" cost? Question 6 Can you think of a better way to represent/ communicate the cost of Air Force One? Question 7 Do you think the reimbursement policy is fair to the president? Why or why not? Question 8 Do you think the reimbursement policy is fair to the taxpayers? Why or why not? el are kept secret to protect the ist of the costs that you think uates and is dependent upon ou think this cost per hour is? e there any purposes for which Air Force One? or why not? or why not
