Airlines sometimes offer reduced rates during certain times of the week to members of a businessperson's family if they accompany him or her on trips. How does the concept of relevant costs enter into the decision by the airline to offer reduced rates of this type?

Question

Aliza

Business

8 June, 10:30

Airlines sometimes offer reduced rates during certain times of the week to members of a businessperson's family if they accompany him or her on trips. How does the concept of relevant costs enter into the decision by the airline to offer reduced rates of this type?

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Kaylynn Ellison · Answer 1

The relevant accounting costs are those that differ in the future, but depend on a decision, in this case the airline can change the decision.

Explanation: therefore the cost of the family ticket, which is offered to carry out marketing of the airline, assuming that the entrepreneurs are the ones who would have more resources to buy tickets for being a target market, the company chooses to give these tickets to carry out the marketing, however, an eligible decision that may change in the future