Managerial Accounting. Variances Discussion

Here are the instructions for this discussion:

Read the following scenario and then thoughtfully discuss the questions.

Pick an organization within the airline industry that you are familiar with or interested in learning about. Identify an example of when a favorable cost variable would not be good news for the performance of the organization.

What department would be responsible for the variance?
What would you recommend to correct the variance?
Explain your reasoning.

Sample Solution