Variable costs are those that are incurred only when a product is made or a service is delivered. The variable cost per flight for an airline includes costs that are incurred each time a plane flies. Fuel is expended, food service is needed for the passengers, and airport landing fees are incurred with each trip a plane makes. Therefore, these are all variable costs.
Variable costs are those that are incurred only when a product is made or a service is delivered. The variable cost per flight for an airline includes costs that are incurred each time a plane flies. Airplane depreciation is a fixed cost that will be the same no matter how many trips the plane makes. Baggage handling costs may be partially fixed and partially variable, because baggage handling equipment is a fixed cost while baggage handling employees may be either a fixed or variable cost. Airline marketing is a fixed cost that will be the same regardless of how many trips are flown. Thus, some but not all of these items are considered variable costs per flight to an airline.
Variable costs are those that are incurred only when a product is made or a service is delivered. The variable cost per flight for an airline includes costs that are incurred each time a plane flies. Communication system operation is a fixed cost that will be the same no matter how many trips the plane makes. Food service is needed for the passengers on each flight, so that is a variable cost per flight. Ramp personnel may be a fixed cost (if the employees are on salary and are paid the same amount regardless of how many flights are made) or it may be a variable cost (if the employees are paid an hourly wage). However, regardless of whether ramp personnel are classified as a fixed expense or a variable expense, not all of these items are considered variable costs per flight.
Variable costs are those that are incurred only when a product is made or a service is delivered. The variable cost per flight for an airline includes costs that are incurred each time a plane flies. The salary for the flight crew is the same regardless of how many flights they make. (The word "salary" implies the flight crew is "on salary," meaning they receive a fixed amount each pay period regardless of how many flights they make or hours they work. The word "wages," on the other hand, implies that they are paid hourly. If "wages" were used here, their wage payments would be a variable cost.) Fuel is a variable cost because fuel is expended each time a plane makes a flight. Engine maintenance is partly fixed and partly variable, because some maintenance needs to be done periodically whether the plane flies or not, and some maintenance needs to be done based on flying hours. Thus, some but not all of these items are considered variable costs per flight to an airline.
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