ipl-logo

Easyjet Case Study Management Accounting

1617 Words7 Pages

Management Accounting Practices of the easyJet plc

Introduction The main objective of the paper to explain the accounting practices of easyJet plc. The paper will explain the summary of the company including its business activities, along with the management accounting information that helps managers of business. Examples of types of information will need to be responding. Furthermore, the paper will evaluate the budgeting, variance analysis, and activity based information, which is used within the company. Moreover, the recommendation of decisions must be applied by the managers of company with respect to factors of management accounting.

Part A
Summary of company easyJet is founded by Sir Stelios Haji-Ioannou in 1995, is considered …show more content…

Hence, variances are analysed by shaping how much differences have impacted the revenue and profits (Horngren, 2012). This specific aspect is essential for accounting managers of easyJet that takes the correct strategic direction, which is required to prevail over the issues before to cut the profits too much. Thus, variance analysis occurs with the finding rate.
Another aspect is activity based costing as it has modelling system that is found in manufacturing firms. The main issue with this aspect is manufacturing firms has to focus on valuing inventory as easyJet cannot do but use standard costs, which is calculated for direct materials and labours. Although, they both are not part of airline industry, which is tricky to calculate the standard costs with the service setting as it is needed to know the accurate costs with the basic service …show more content…

The effectiveness of business comes with the consistency of progress along with all different factors. The aspects of budget variance are also discussed. However, while considering the different non-financial factors; environmental and competitive analysis is also being done in the paper in order to complete form of analysis. It is rightly said that customer satisfaction is assumed as the main factor to which easyJet becomes successful for company that always brings changes, which is based on customers in order to offer the low cost

Show More
Related

  • Nt1330 Unit 8

    1003 Words  | 5 Pages

    First I would need to review the previous controller’s closing process to determine areas that need improving. Next I would document every step of the closing process this will help itemize the nature of each task, who completes it, the time required to complete it, and any queue times that appear when a task is shifted to a different person within the process. I would also consider shifting work outside the period traditionally reserved for closing activities. I would review the closing activities to determine which ones could be shifted to the previous months and which ones can be delayed until after close. Implementing automation can also shorten the closing process.

    Read More

  • Finance Case Study: The Wilkerson Company

    895 Words  | 4 Pages

    Wilkerson is currently using the traditional costing system. “Companies that use the traditional costing method assume that the volume metric is the underlying driver of manufacturing overhead cost.” Traditional product costing was established when direct material costs and direct labor costs accounted for the bulk of product costs incurred inside a firm. In the Wilkerson company, materials and labor costs are centered around the prices of materials and labor rates.

    Read More

  • Case Study: Trans-Caribbean Airways

    741 Words  | 3 Pages

    This paper will analyze the strategic issues that guided TB Majestic Air now known as Trans-Caribbean Airways business decisions. As a team, we integrated the findings of strategic, environmental, and core business function while providing input in our decision making and planning. We used the results from our Period 4 to reassess previous decisions such as increasing our budget from $7,500 to $10,000 and increasing our maintenance level from 2 to 3 to operate at an optimum level in accordance with the size of our fleet. Lastly, our team made a decision venture into joint-venture with a major airline that allows all of our market to be listed with their computerized reservations system and schedules, permits for better scheduling for our

    Read More

  • Home Depot Financial Analysis

    365 Words  | 2 Pages

    P., Tsay, B., & Olds, P. R. (2011). Fundamental managerial accounting concepts (6th ed.). New York, NY: McGraw-Hill Irwin. WILLSON, T. (2014). Finding Budget Flexibility - or Not: The Impact of Fixed and Variable Cost.

    Read More

  • Transnational Strategy Of Lufthansa

    1545 Words  | 7 Pages

    Lufthansa Lufthansa uses transnational strategy to gain global presence and recognition (Franz 2014). This strategy has been achieved by creating alliances and partnerships with other renowned carriers globally, especially in the European region. It is the most fundamental strategy Lufthansa leveraged on, in order to maintain core leadership in the airline industry not only in the European markets, but worldwide as well. As one of the founding members of Star Alliance, Lufthansa is able to offer customers across the globe a more convenient travel experience (Franz 2014).

    Read More

  • What Is The Competitive Advantage Of Ryanair

    1490 Words  | 6 Pages

    However, in the recent years, Ryanair keep changes and make a development on its brand image and made a lot of efforts to attract more customers and use the past bad experienced to teach them to become better in future. After Ryanair faced all the challenges in the airline business for many years, it is managed to become a biggest low-fares airline in the Europe and use the low fares as a competitive advantage of Ryanair. In this report, we are required to perform a SWOT analysis, evaluate four criteria of sustainable competitive advantage, discuss the two primary value chain activities which are operation and sales and marketing, and finally we need to discuss the impact of two external environmental factors that challenge Ryanair company to remain competitive in the airline industry. 1.

    Read More

  • Competitive Case Analysis Of Wilkerson's Company

    1770 Words  | 8 Pages

    Also, various methods of controlling costs such as standard costing system and flexible budgets have close relation with the variable costing system, in turn making it easy to use those methods. 3. Companies using variable costing system are able to prepare income statement in contribution margin format that provides necessary information for cost volume profit (CVP) analysis. On the flip side, this data cannot be directly obtained from a traditional income statement prepared under absorption costing

    Read More

  • Exploratory Essay

    616 Words  | 3 Pages

    BLOG Facts that no one tells you about accounting services Some of us hate the concept of hiring accounting services and some of us are scared or feel hesitation in hiring their services. However, with the passage of time the clouds of ignorance are clearing and people are waking up to the benefits of accounting services for their personal and business needs. In these circumstances, there are still many people who hardly have any idea about the services of an accounting firm and their advantages in the contemporary times. Thus the following facts aim to bring some interesting aspects about accounting or tax services that nobody would tell you in the current times.

    Read More

  • Political And Environmental Factors That Affect The Airline Industry

    885 Words  | 4 Pages

    Economic Environment Factors such as Crude oil prices, aircraft prices, Economies of Scale may also have effect on the airline industry. Social Environment Tourists and Business travellers contribute to the growth of the airline industry. Technological The use of modern technology by the airline manufacturers can contribute significantly to the growth of the

    Read More

  • Southwest Airlines Management Accounting System

    1505 Words  | 7 Pages

    Introduction: Here in this assignment a management accounting report needs to be prepared for analyzing how management accounting can be useful in providing the managerial information for the purpose of decision making. The organization selected to make this analysis is Southwest Airline. It is a management accounting report in which starting from the background of the company, the management accounting system of the company has been analyzed and how its’ providing the information for the purpose of management decisions being evaluated. Background of the company: Southwest Airlines was shaped in 1978 with reason to serve voyaging service via air course. What's more, after consolidation southwest aircrafts persistently succeed regarding productivity, great worker and union connection and consumer loyalty.

    Read More

  • Analysis Of Financial Analysis: Whitbread PLC

    3531 Words  | 15 Pages

    Analysis of Financial Statements Student number: 10221450 Word count: 2993 words Excluding Bibliography Course code: B9AC106 Course title: Financial Analysis Lecturer: Mr. Enda Murphy Company: Whitbread PLC   Table of Contents 1. Whitbread plc 3 Financial Ratio Comparison 6 1.1 Profitability Ratio 6 1.2 Liquidity Ratio 9 1.3 Efficiency Ratio 11 2. Intercontinental hotels group plc and Ratio Comparison with Whitbread 12 3. 10% Stake in Intercontinental Hotels Group PLC 13 Conclusion 16 Market Value and Book Value

    Read More

  • Managerial Accounting

    964 Words  | 4 Pages

    CHAPTER 1 1.0 INTRODUCTION Today, managerial accounting plays an important role in many organizations. Managerial accounting is an alternative term for management accounting which defined as the procedure of preparing management accounts that provide precise and timely key financial and statistical information to make day-to-day and short term decisions by the managers in the organizations (BusinessDictionary.com, 2015). A crucial role of managerial accounting is to deliver economic and financial information for managers and other internal users in making decisions as well as add value to an organization. (Siegel, 2015) states that adding value to organization means assisting managers operate the business by providing significant information for business decisions, explaining how the information affects the decision, and participating in the decision making process.

    Read More

  • SWOT Analysis Of Flydubai: Low Fist Airlines

    1467 Words  | 6 Pages

    For instance, with the global financial crisis and later the Eurozone crisis, the number of travellers has significantly reduced due to economic hardships. This has affected the profit levels of the airline as well as slowed down its growth prospects. The airline also faces intense competition from other low cost airlines forcing it to extensively invest in product differentiation to counter the competition. This is an expensive

    Read More

  • Ryanair: The Transformation Process In The Airline Industry

    855 Words  | 4 Pages

    In the airline industry, we can distinguish six categories of inputs. Firstly, labour input refers to the number of employees a corporation has. Secondly, there is fuel input. Thirdly, the capital input includes the number of aircrafts a company owns through purchase

    Read More

  • Unilever Executive Summary

    1494 Words  | 6 Pages

    Executive Summary Throughout this assignment, the company activities, structure, management accounting functions and contributions to modern management accounting of Unilever Plc has been stated clearly. Unilever Plc is one of the world’s largest manufacturers of transnational consumer and founded in the year 1929 after the combination of two companies. It is a multi brands company which having more than 400 brands and involving in producing food, beverages, personal care and home care products. There are totally 14 committees in Board of Directors of Unilever Plc.

    Read More

More about Easyjet Case Study Management Accounting

Open Document