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Q4. The airlines have started since long to limit the quantity of free baggage and charge at a higher rate for any additional quantity above
Q4. The airlines have started since long to limit the quantity of free baggage and charge at a higher rate for any additional quantity above the limits allowed. While this may be frustrating for us as a customer, it is a requirement for the airline company. The policy of charging passenger luggage not only ensures limited passenger baggage but also provides sufficient space to handle cargo which is a money minting exercise for the airline company. Why do you think the airlines are charging more money for heavier and odd shaped baggage? How does additional baggage affect the airline negatively apart from restricting space for cargo? (3+3=6 marks) Q5. Many companies around the world suffer from poor cost accounting. As a result, they sometimes make products that they should not be selling at all, or they buy intermediate products that they could more profitably make on their own. Also, inaccurate cost data leads to misallocation of capital which may lead to putting undue pressure for enhancing the efficiency. Why do you think cost & managerial accounting has become so essential over a period of last decade? What kind of costs are primarily underestimated by the companies & why they are becoming so significant? (3+3=6 marks)
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