Management Accounting Information Aids Managers

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Easyjet Plc. was established in 1995 and has grown from flying from London Luton to Edinburgh and Glasgow to 2015 where Easy Jet now flies over 600 different routes and operates across over 30 countries. Easy jet expanded its business activities to include the sale of package holidays and hotel bookings. Easy Jet has strategic objectives in which it likes to follow. These objectives are set out in Easy Jets 2014 Annual and Financial report. The objectives are as follows: - 1. Drive demand, Conversion and yields across Europe. 2. Maintain Cost Advantage. 3. Build number 1 and 2 network decisions. 4. Disciplined use of capital. Also Easyjet creates itself a competitive advantage from: - • Low fares • Brand • Easyjet.com • Overall…show more content…
Easy jet can keep their fares at a minimum by reducing costs and expenditures. Monitoring these costs will include looking at key financials and non-financial factors. This monitoring will also encompass looking into the operating cost excluding fuel as well as the costs of fuel. The manager will look through the costs meticulously, and search for ways to reduce expenditure. An example of keeping expenditure down was apparent in 2014, Easy jet intended to introduce a more cost efficient aircraft. This new aircraft, which seats 180 passengers, will replace the current aircraft, which only seats 156 passengers. This advanced aircraft wont only hold a bounteous amount of passengers, but will be a more fuel-efficient aircraft as well. This potential fuel-efficient aircraft will cause a decrease in fuel costs, enabling Easy jet to increase its current cost advantage over its competitors as well as keeping fares low. A ‘Key objective is to drive demands, conversion and yields across Europe’ (reference) Easyjet managers will compare the amount of passengers who flew during this current year and compare it to the amount of passengers who travelled with them in previous years. If passenger’s numbers require escalation, the managers will evaluate their marketing strategies and improve them in order to increase the drive of demand. The managers will be necessitated to analyse other factors, which may affect passenger numbers such
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