Task 1
(a) Explain the importance of focusing on costs and volume for easyJet. You should use the company
accounts to provide examples of the types of costs that are incurred by the airline and how costs and
volume are controlled as part of financial management. (1.1)
(b) Analyse cost-plus pricing and consider how appropriate it is for easyJet to use this pricing strategy.
(1.2)
(c) Using easyJet’s annual accounts, analyse two factors that influence the company’s ability to
generate profits. (1.3)
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Task 2
(a) Explain and assess how an in-depth understanding of management accounting information can
assist easyJet in making decisions about future performance and activities. You should include specific
reference to using budgets as monitoring and control tools. (2.1)
(b) To show your understanding of how management accounting can be used as a decision-making
tool, assess the usefulness of ‘trends comparisons’ for easyJet. (2.2)
Task 3
(a) Using the Annual Results of easyJet for 2016 as an example, discuss the functions of the Income
Statement, Statement of Financial Position (Balance Sheet) and the Statement of Cash Flow. (3.1)
(b) Identify and interpret three trends in financial performance using the easyJet annual results
information. You should use specific examples, financial information and performance statistics from
the results document to support your interpretation of the three trends. (3.1)
Task 4
Analyse the sources and distribution of funding for the development of capital projects associated with
tourism. In your answer, include an analysis of the potential benefits of public and private sector funded
projects for travel and tourism businesses, such as easyJet. (4.1)