Question

.       Airlines are well known for using complex pricing structures. For example, it is often (but not always) less expensive to buy a ticket in advance than it is on the day of the flight. However, if the airline offered this lower (“discount”) fare for all seats, it could not remain in business.

a)Why offer fares with different prices?

b)What, if any, costs are different?

Answer 1

Accounting System :-

Purpose of creating accounting information system is to provide information

for decision making of acciunting user. User can be classified as per primary Creditores,

Inventors & goverments etc. And Secondary user internal including Manager or Employee

Accounting system furtehr classified into Finacial Accounting & Cost Accounting. This also differniate

beetween Primary & Secondary users

Financial Accounting :-

Financial Accounting system is designed for the purpose of External user like Creditors,

Govt. Authorities & Tax Authorities etc.   Manager of the company is interetsted in Financial

Accounting System.producing financial statements for meeting regulatory requirements.

Finacial Information could make comparision between two or more companies for decision making purpose

Cost Accounting :-

Cost accounting is a process of recording, analyzing and reporting all of a company's costs (both variable and fixed) related to the production of a product

This is so that a company's management can make better financial decisions, introduce efficiencies and budget accurately.

Cost accounting information is commonly used in finacnacial accounting also but it is primarily used for Internal Management Decision Making. Conclusion:- As per above differniate between accounting system Airline offers the Fare at differniate rate.