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 may be a cost driver for some activities in RDS‚ but not all activities are driven
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Tutorial 3- Chapter 2: Social Responsibility and Ethics Tutorial Activity 1: Ongoing Semester Case Study- Businessville Hotel The hotel manager should not acquire furniture from the furniture dealer even though he was a friend of his brother. Looking at the economic perspective‚ the manager might want to acquire the furniture from the dealer with the cost saving purpose as he was given a discount for the furniture. However‚ the manager should accomplish his duties legally while complied with his
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This page intentionally left blank International Management Culture‚ Strategy‚ and Behavior Eighth Edition Fred Luthans University of Nebraska–Lincoln Jonathan P. Doh Villanova University INTERNATIONAL MANAGEMENT: CULTURE‚ STRATEGY‚ AND BEHAVIOR‚ EIGHTH EDITION Published by McGraw-Hill‚ a business unit of The McGraw-Hill Companies‚ Inc.‚ 1221 Avenue of the Americas‚ New York‚ NY 10020. Copyright © 2012 by The McGraw-Hill Companies‚ Inc. All rights reserved. Previous editions © 2009‚
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Case Study – Activity – Based Management in Shell Gabon Case Requirements 1. SG TOTAL UOC per barrel = $140‚640‚200/(120‚000 barrels/day * 365 days/year) = $3.21/barrel Barrels of oil produced is a cost driver for some of the activities in RDS‚ but not all are driven by production of oil. UOC = Total Operating Expense (OPEX) excluding exploration‚ depreciation‚ and depletion therefore there are other activities like exploration‚ new capital equipment for exploration‚ research and development
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ABB has. What is Activity-Based Budgeting (ABB) Definition of ABB Brimson says ABB is a managing process that based on the activity level‚ in order to get lasting improvement on cost and operation (Brimson 1991). It presents a budget in terms of the cost of a company’s products and services (NDMA 2006). Background of ABB ABB‚ evolved from ABC (Activity-Based Costing)‚ is the "application of ABC and ABCM principles in a budgetary control setting" (Williamson 1996). ABB is based on products planning
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well-designed activity-based costing system starts with __________. A. analyzing the activities performed to manufacture a product B. assigning manufacturing overhead costs for each activity cost pool to products C. computing the activity-based overhead rate D. identifying the activity-cost pools 2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________. A. have been approved for use by the managements of business firms
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Activity-based costing in restaurants 1. Introduction Interest in cost and management accounting practices in the restaurant industry is rising (Raab et al.‚ 2009; Annaraud et al.‚ 2008). Pavesic (1985) has initiated research in pricing and cost accounting for restaurants‚ introducing the concept of profit factor (PF) in menu engineering (ME). Prior studies‚ such as the one presented in Chan and Au (1998) investigate the implications of not incorporating overhead costs in menu-item profitability
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1 Which of the theories of international trade can help Indian services providers gain competitive edge over their competitors? Ans The theory of free markets can help indian services providers gain competitive edge over their compititors because India has got an edge over other countries at this point of time but other nations may try to make their products look cheaper by manipulating their currencies or by imposing restrictions on imported service especially from india You only need one theory
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Automation Conference‚ Boston‚ Massachusetts‚ Sept. 17-20‚ 1995. THE USE OF ACTIVITY-BASED COSTING‚ UNCERTAINTY‚ AND DISASSEMBLY ACTION CHARTS IN DEMANUFACTURE COST ASSESSMENTS Bert Bras and Jan Emblemsvåg The Systems Realization Laboratory The George W. Woodruff School of Mechanical Engineering Georgia Institute of Technology Atlanta‚ Georgia 30332-0405 ABSTRACT In this paper‚ the development of an Activity-based Cost (ABC) model is presented for use in design for demanufacture under the presence
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the use of traditional costing system is no longer relevance to the company to achieve competitive advantage. Nowadays‚ Activity Based Costing is considered as one of the effective tools to enhance the ability of the organisation to meet global competition. This had resulted in the change from traditional costing system to an increasingly popular costing system such Activity-Based Costing (ABC). ABC system has emerged as an alternative to traditional costing system to meet the need for accurate cost
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