alleryStart learning →All else equal, what does a lower CASM mean for an airline?
AHigher fixed costs
BEasier to make a profit
CLarger fleet of aircraft
DHigher fuel prices
Answer & Solution
Correct answer: B. Easier to make a profit
With a lower unit cost the airline can charge less and still break even.
Keep practising Units of Measurement in Transportation
Browse all Units of Measurement in Transportation questions for CA Inter, or explore more Cost and Management Accounting topics.
Related questions
Unit costs include which costs involved in production?Yield management generates yield through which kind of inventory management?Why is revenue management useful for hospital surgery rooms?Revenue management is seen by some as synonymous with what?Why do hotels and airlines often overbook if cancellations loom?In hotel revenue management, what does RevPAR stand for?Revenue management mainly aims to maximize profit by adjusting pricing and managing what?ASM and ASK measure which aspect of a passenger carrier?