Airtran Airways – Activity Based Costing
Identify a product or service in AirTran that could use ABC. Then identify at least two activities for ABC and the appropriate cost drivers for those activities. Estimate the application rates for each cost driver.
If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual.
Your report should include:
– The name and nature of the organization
– The activity and time period you used
– The inputs you used
– Your results
– Any implications from your results