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What are potential cost drivers for an ABC system at Virgin America?

What are potential cost drivers for an ABC system at Virgin America?. Original blog posting ( September 20 , 2013). Virgin America recently announced that it anticipates a profit for 2013. They have had several years of losses Greater cost control. Question 1.

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What are potential cost drivers for an ABC system at Virgin America?

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  1. What are potential cost drivers for an ABC system at Virgin America? Original blog posting (September 20, 2013)

  2. Virgin America recently announced that it anticipates a profit for 2013 • They have had several years of losses • Greater cost control

  3. Question 1 For each of the expenses listed in the income statement, select a cost driver from the drivers listed under “Selected data.”  Provide rationale for your choice of each of the drivers.

  4. Question 2 Are there any expenses you would group together into a single pool?  Why or why not?

  5. Question 3 How could Virgin America use these cost pools and activity-based costing information internally?

  6. Question Recap • For each of the expenses listed in the income statement, select a cost driver from the drivers listed under “Selected data.”  Provide rationale for your choice of each of the drivers. • Are there any expenses you would group together into a single pool?  Why or why not? • How could Virgin America use these cost pools and activity-based costing information internally?

  7. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/Related video resources can be found at http://www.youtube.com/user/accountingheadlinesQuestions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu

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