Bus630 Managerial Accounting
Lawanda M. Bishop
Professor Gregory Goussak
1. JetBlue’s strategy for success in the marketplace is to stimulate demand with lower fares, emphasize low operating costs that stimulate market demand while operating efficiencies and costs. It also strives to benefit from economies of scale from its future expansion. By offering low rates, product leadership and customer value, their demand will increase, offering travelers with a low-cost alternative. JetBlue have one of the largest load factors in the United States. By relying on customer intimacy, operational excellence, ...view middle of the document...
A contract to protect the risk of foreign exchange should also be entered into. Most of JetBlue’s workforce may one day seek to unionize. This process could result in work slowdowns, stoppages or an increase of operating expenses. And there might be an increase in maintenance costs due to the aging of the fleet. (Garrison, Noreen, & Brewer, 2010)
3. The concept of unit level activities occur each time a service is done or products or being produced. The number of times unit-level activities are performed varies according to the number of units produced. This concept is applied to airlines since airlines incur costs that are needed so that they are accounted for in the books of accounting. Airlines have unit level costs such as the cost for the crew members, the maintenance of the aircraft, and the cost of tickets. The two examples of unit-level activities for JetBlue would be how they run the ticketing processing machines and the maintenance of all their aircrafts. The steps JetBlue has taken to manager their unit levels was making sure they purchased aircrafts from providers who only provided warranties to them and making sure the ticket processing is facilitated in advance and how customer service providers didn’t double book customers. (Shwiff, 2008)
4. The concept of batch level activities can be applied by making sure airlines have...