sk,
Thank you for your answer, I appreciate the quick response. It has, however, lead to a few other questions.
I understand from your answer that branch office costs, like the costs of leasing and maintanance, are divided proportionally among the flights and not paid with each depature. However, unlike leasing and maintenance, I see no line item dedicated to ‘branch office fees’ on either the Income Statement or the Balance Sheet. How am I to know how much money my company is spending from week-to-week on branch offices, unless I manually add the proportional cost of each flight to arrive at the total? Where is this fee being deducted on a weekly basis? I thought maybe the ‘week-end closing costs’ would include it, but that cost is identical to the salary total listed on my staff page.
You mentioned indirect costs in your answer. Of the five ‘indirect costs’ listed for each flight, I understand how the leasing and maintenance costs are calculated. But under Crew, is the cost shown the proportional cost for my entire staff, which is to say all positions listed on the staff page, or simply for the pilots, flight attendants, and pursers?
How about Management? Is this the proportional cost of specific staff, and if so, which positions? Or is this fee something completely unrelated to staff? If it’s unrelated to staff, where is this cost deducted on a weekly basis, as there’s no line item to indicate the weekly total on the Income Statement or Balance Sheet.
I realize this may seem trivial, especially for large airlines who are making hundreds-of-thousands, if not millions, of dollars a day in profit, but for a small airline like mine, where a few hundred dollars is the difference between a profitable route and not, it matters.
Thanks for your help and support,
Joe