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MANAGEMENT CASE STUDY PRACTICE EXAM ANSWERS

The Chartered Institute of MANAGEMENT Accountants 2014 no reproduction without prior consent MANAGEMENT CASE STUDY PRACTICE EXAM ANSWERS The PRACTICE Exam can be viewed at Section 1 Report to the finance director Strategic implications of an increase in fuel prices and an evaluation of activity-based MANAGEMENT Fuel prices The price of aviation fuel continues to be volatile. The political situation in major oil exporting countries has caused a recent spike in prices. This paper discusses some of the implications of a prolonged increase. Fuel accounts for = 25% of our cost per ASK (see pre-seen). That suggests that a prolonged increase will prove costly to our operations.

The Chartered Institute of Management Accountants 2014 – no reproduction without prior consent. ... increased cost of airfares to customers because prices will be rising across the industry. ... Some airports charge higher landing fees and so the profitability of …

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  Management, Cost, Profitability

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