Question
SkyAir, a large multi-national airline has many responsibility centres. A. The South American division, which is responsible for operations in South America and has the
SkyAir, a large multi-national airline has many responsibility centres.
A. The South American division, which is responsible for operations in South America and has the authority to purchase new aircraft and add/cut routes.
B. The Pilot Training group, which is responsible for training new SkyAir pilots.
C. The reservations group, which is responsible for making SkyAir reservations
D. The maintenance division, which is responsible for SkyAir aircraft maintenance. As well, from time-to-time will also do maintenance for other airlines, but this represents less than 2% of revenues.
E. The fuel group, which is responsible for SkyAir fueling aircraft.
Required: Briefly identify how should each of these be evaluated:
(Following Cost Accounting Methods)
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