GEZ Petrol Station
Table of Contents
INTRODUCTION
GEZ Bhd is the major oil company in Malaysia has conducted two main businesses, which is the fuel business and the convenience store business. Under the fuel business, the petrol stations sold Petrol Ron 95 (R95), Petrol Ron 97 (R97), and Diesel. Mr Aiman was as an Area Manager is responsible for directing the sales activities of more than twenty petrol stations in the northern region of Malaysia. They are having a difficulty to sustain in the business even though they are in the stable business segment and consistent in the long run. This is due to the lack of knowledge in finance and costing which is it contributed to the business failure. There were disadvantages associated with a petrol station that is the fuel business had a very low profit margin. It was important that operators manage their cash collection very well. Realising the importance of management accounting concepts, Mr Aiman believed that the dealers and their relevant staff should have the knowledge in cost accounting. In order to collect data and build financial model, Mr Aiman has sought the advice from Rizal, a trained management accountant. To begin developing a CVP model, Rizal has gathered the necessary data from Baron Service Station (BSS) which is the busiest petrol station in the city. The petrol station had four pumps for petrol and one for diesel and the total number of nozzle was 20. The model that he would develop could be applied by petrol station operators of the same category.
Regarding this case, from the cost-volume-profit analysis, Rizal can find that the breakeven point which is how much sales the petrol station of this type should generate from each of the fuel products and the Selesamart. Mr. Aiman also can learn that the importance of differentiate between fixed cost and variable cost so that the petrol stations can sustain their profitable business and growth.
DATA ANALYSIS
1. How lucrative is the petrol station
INTRODUCTION
GEZ Bhd is the major oil company in Malaysia has conducted two main businesses, which is the fuel business and the convenience store business. Under the fuel business, the petrol stations sold Petrol Ron 95 (R95), Petrol Ron 97 (R97), and Diesel. Mr Aiman was as an Area Manager is responsible for directing the sales activities of more than twenty petrol stations in the northern region of Malaysia. They are having a difficulty to sustain in the business even though they are in the stable business segment and consistent in the long run. This is due to the lack of knowledge in finance and costing which is it contributed to the business failure. There were disadvantages associated with a petrol station that is the fuel business had a very low profit margin. It was important that operators manage their cash collection very well. Realising the importance of management accounting concepts, Mr Aiman believed that the dealers and their relevant staff should have the knowledge in cost accounting. In order to collect data and build financial model, Mr Aiman has sought the advice from Rizal, a trained management accountant. To begin developing a CVP model, Rizal has gathered the necessary data from Baron Service Station (BSS) which is the busiest petrol station in the city. The petrol station had four pumps for petrol and one for diesel and the total number of nozzle was 20. The model that he would develop could be applied by petrol station operators of the same category.
Regarding this case, from the cost-volume-profit analysis, Rizal can find that the breakeven point which is how much sales the petrol station of this type should generate from each of the fuel products and the Selesamart. Mr. Aiman also can learn that the importance of differentiate between fixed cost and variable cost so that the petrol stations can sustain their profitable business and growth.
DATA ANALYSIS
1. How lucrative is the petrol station