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CA Inter Units of Measurement in Transportation — practice questions — page 2

Explore 39 free Units of Measurement in Transportation questions in CA Inter Cost and Management Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Units of Measurement in Transportation questions and exercises with answers

Showing questions 31–39 of 39.

Why does computing CASM for a single route need judgment?Read the answer and worked solution →ASM and ASK measure which aspect of a passenger carrier?Read the answer and worked solution →Revenue management mainly aims to maximize profit by adjusting pricing and managing what?Read the answer and worked solution →In hotel revenue management, what does RevPAR stand for?Read the answer and worked solution →Why do hotels and airlines often overbook if cancellations loom?Read the answer and worked solution →Revenue management is seen by some as synonymous with what?Read the answer and worked solution →Why is revenue management useful for hospital surgery rooms?Read the answer and worked solution →Yield management generates yield through which kind of inventory management?Read the answer and worked solution →Unit costs include which costs involved in production?Read the answer and worked solution →

Worked practice questions

Why does computing CASM for a single route need judgment?

  1. Shared costs must be allocated
  2. Fuel is excluded from costs
  3. Seat counts cannot be measured
  4. Route revenue is unknown
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Correct answer: A. Shared costs must be allocated

Costs such as senior management salaries serve the whole airline, so spreading them over routes requires an allocation method.

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ASM and ASK measure which aspect of a passenger carrier?

  1. Fuel burned per seat
  2. Profit earned per trip
  3. Share of seats sold
  4. Passenger carrying capacity
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Correct answer: D. Passenger carrying capacity

Available seat miles or kilometres count seats offered times distance, which is capacity rather than traffic actually carried.

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Revenue management mainly aims to maximize profit by adjusting pricing and managing what?

  1. Recruitment of staff
  2. Statutory compliance
  3. Occupancy of capacity
  4. Supplier credit terms
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Correct answer: C. Occupancy of capacity

Revenue management maximizes profit by setting prices and managing how much of the capacity is occupied.

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More Cost and Management Accounting topics

Cost SheetProcess CostingCost AccountingMarginal CostingEmployee CostInventory ValuationActivity Based CostingBudgets and Budgetary Control