1. Calculate the UOC per barrel for SG. Is a barrel of oil the cost driver for all the activities that go on within RDS? Comment on why RDS chooses to monitor costs per barrel. The UOC per barrel for SG is $3.21. OPEX | $140‚640‚200 | 120‚000 | barrels/day | | | 365 | days/year | Total | $140‚640‚200 | 43‚800‚000 | barrels/year | Unit Operating Cost (UOC) | $3.21 | | | *UOC = (Total Operating Expense – Exploration – Depreciation & Depletion) / Barrels Produced Barrels of oils produced
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Chapter 2 1. Which of the following would be considered a product cost for external financial reporting purposes? a. Cost of a warehouse used to store finished goods. b. Cost of guided public tours through the company’s facilities. c. Cost of travel necessary to sell the manufactured product. d. Cost of sand spread on the factory floor to absorb oil from manufacturing machines. 1. Which of the following would be considered a product cost for external financial reporting purposes
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cost management‚ will manage the cost in the long term. Yummy Sdn Bhd can successful reduce the cost at the same time can continue to maintain the satisfaction of the customer. Activity-Based management (ABM) provide information on the cost of what activity and how well they are performed. The ABM can secure its markets through improve the efficiencies and effectiveness of Yummy Sdn
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Buckeye National Bank 1. Under the traditional (old) cost system: a. Compute the single indirect cost allocation rate that the bank would use to allocate the total indirect costs presented in Exhibit B. (Total indirect costs/total value of checks processed‚ in thousands) $2‚850 / $95‚000 = $0.03 b. Use your answer to part A to determine the total annual indirect cost assigned to: i. The retail customer line (Value of checks processed X cost per dollar processed‚ in thousands)‚ and $9‚500 * $0.03
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its other products. Answer: True Difficulty: 2 Objective: 1 Terms to Learn: product-cost cross-subsidization 4. Direct costs plus indirect costs equal total costs. Answer: True Difficulty: 1 Objective: 2 Terms to Learn: activity-based costing (ABC) 5. When refining a costing system‚ a company should classify as many costs as possible as indirect costs. Answer: False Difficulty: 1 Objective: 2 Terms to Learn: refined costing system When refining a costing system‚ a company should classify
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the overhead cost to be allocated to that department (£8275872). This result was finally divided by the units produced to give us the overhead cost per unit (£27.59). Q. A. 2. Using ABC calculate the unit costs for A and B. The Overhead costs of Duo plc were now allocated using the Activity Based Costing (ABC) system‚ as seen in tables 2‚ 3 & 4. In table 2 the apportionment basis (cost drivers) for each overhead cost‚ and the proportion of the cost to go to each part of production was stated
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Allied Office Products Case Objective: This case provides practice in Activity-Based- Analysis (ABC) calculations for a service company. It also highlights the important considerations in moving from ABC to Activity-Based Management (ABM) and further into Strategic Cost Management (SCM) so as to influence customer behavior and profitability. Q1. Using the information in Exhibit 2 calculate ABC based service costs for the TFC distribution/warehouse services. These are some broad steps that can
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cost (ABC) model using the information in the case. 5. Estimate the ABC-based cost and profitability of Wilkerson’s three product lines by estimating the various activity cost driver rates using the manufacturing overhead amount and actual total usage data of the various activity cost drivers in March 2000 provided in Exhibit 4. Why are these costs and profits different from the product costs reported in Exhibit 2? What causes any shifts in cost and profitability? 6. Repeat the ABC cost and
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Assignment 1 – Manufacturing company Johnson & Johnson Johnson & Johnson is an American multinational company that was founded in Brunswick‚ New Jersey in 1886 by American entrepreneurs Robert Wood Johnson and Edward Mead Johnson. It manufactures pharmaceuticals‚ medical devices and consumer products. Johnson and Johnson and its subsidiaries have operations in over 60 countries and sell their products in over 175 countries. They are one of the world’s largest manufacturer of health care
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Introduction to the Balanced Scorecard and Performance Measurement Systems 1 Chapter 1 Introduction to the Balanced Scorecard and Performance Measurement Systems by Christian C. Johnson From the beginning‚ it is important to understand why measuring an organization’s performance is both necessary and vital. An organization operating without a performance measurement system is like an airplane flying without a compass‚ a Formula One race car driver guiding his car blindfolded‚ or a CEO
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