Complete 5 Financial Analysis Classmate Repsonse Posts

CLASSMATE POST 1:

1. Airplane Fuel- Variable –Gas prices go up and down daily
2. Flight attendant salaries-Fixed- Each airline sets aside a budget for salaries
3. Baggage handlers salaries- Fixed- Each airline sets aside a budget for salaries
4. In-flight meals- variable- Some people on flights and some don’t.
5. Pilots salaries- Fixed- Each airline sets aside a budget for salaries
6. Airplane depreciation- Variable- Depends on the airline
7. Advertising- Variable- During different time of the year and advertise more due to holidays or different events.

CLASSMATE POST 2:

1. $8,500 Returns x $5.00 per return = $41,000 expected costs

  $56,880 actual cost – $41,500 expected cost = 15,380 Variance

2. 60/15 = 4 per hour

4 x 8 hours = 32 returns a day

32 x 5 weekdays = 160 returns per auditor

160 x 4 weeks = 640 per month

8300 returns processed/ 640 returns per month = 13 auditors

18 auditors – 13 needed auditors = 5 auditors that aren’t needed and can be transferred

3. The variance is most likely due to the lack of experience, job experience and efficiency of the newer auditors as opposed to the saltier auditors. The less experienced auditors may require extended onboarding and or training. There may also be the issue of incentive for the auditors to complete the work on time. Incentive policies can be positive or negative in nature, and management could use this as a tool.

4. Alternative cost drivers may be tied up in the amount of personnel that need to amend their tax forms, as well as software issues. This may include actual non-working problems, or newer software that requires familiarity training.