ISSN 1940-204X Activity-Based Management in Shell Gabon* Shahid Ansari Babson College Jan Bell Babson College Background Table 1 SG’s 2000 OPEX Cost Forecast 2 During the 1990s‚ world events‚ such as Russia’s increased oil production and Asia’s economic meltdown‚ caused excess oil supply. In fact‚ by mid-2002‚ there was over 6 million barrels per day of excess production capacity. Oil prices‚ much like any other commodity prices‚ respond to supply conditions with wide price
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Shell Gabon 11/6/2014 Cost Accounting Case Study 1. The UOC is calculated by dividing the total operating cost‚ excluding exploration‚ depreciation‚ and depletion by the barrels produced. In the case of RDS not all activities can be traced directly to a barrel of oil. There are departments such as Human Resource Management and Business Management that are not directly related to this measure. It makes sense for RDS to use barrels as the primary cost driver due to the large cost of the Production
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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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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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Korey Rogan 4/22/13 Art Appreciation IMA Project Write-up As I entered the Indianapolis Museum of Art I was amazed by the installation art in the main area. The first thing you see when you walk in pass the glass doors is Spencer Finch’s installation art‚ Following Nature‚ dangling from the ceiling. The work is so beautiful because it’s a thin piece of glass hanging from a string reflecting light from all different angles. And with the glass windows on the building having colorful‚ the
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STATEMENT OF ETHICAL PROFESSIONAL PRACTICE IMA STATEMENT OF ETHICAL PROFESSIONAL PRACTICE Members of IMA shall behave ethically. A commitment to ethical professional practice includes: overarching principles that express our values‚ and standards that guide our conduct. PRINCIPLES IMA’s overarching ethical principles include: Honesty‚ Fairness‚ Objectivity‚ and Responsibility. Members shall act in accordance with these principles and shall encourage others within their organizations to adhere
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Management 307 Shell-Nigeria case The Business Ethics of Shell in Nigeria The Shell-Nigeria case has produced great debates about business practices and what is deemed ethical behavior. When applying the views of some of the great moral philosophers‚ economists‚ and philosophical concepts in history to the Shell-Nigeria case‚ one is left with a variety of diverse viewpoints about whether or not Shell’s business practices were ethical. Philosopher and economist‚ Adam Smith‚ would likely have
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Ace Fertilizer Company Abby Conroy was tasked with calculating an effective quote for Breeland Ltd.‚ she chose the activity based accounting costing system since it more accurately captures the related costs. A special order was placed by Breeland Ltd. with Ace Fertilizer Company. The did not plan to order more of this product in the future. Based on Ace’s policy‚ the special order included disposal costs for any used materials in the event no other orders existed for the unused materials
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The Paper Airplane Lab Purpose: How can a paper airplane be modified so that it can fly farther? Hypothesis: To make our paper airplane fly farther‚ Naveen and I decided to bend the sharp tip of our plane down. We made this modification because the wings of the airplane enable it to fly farther since it makes the airplane stay longer in the air. We believed that because the wings enlarge the volume of the airplane‚ the air resistance on it would become more‚ making it able to stay in the air
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NA0198 Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy James J. Kennelly‚ Skidmore College Trevor Mengel‚ Skidmore College This is one of the biggest stories in the country. . . . Either corporate rule will continue to dictate in this country‚ or the will of the people. Maura Harrington of the Shell to Sea Campaign‚ June 2‚ 20091 . . . Has my vision of Shell being an accepted and welcome part of the community become a reality? Not fully. But I believe we are on the right
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