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answer the ff: questions Calculate the UOC per barrel for SG. Is a barrel of oil the cost driver for all the activities that go
answer the ff: questions
- 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.
- Discuss the concept of "cost driver", how do you think the consultants mentioned in case were able to use this concept in addressing the problem of Shell Gabon?
- The current situation worldwide is that the price of oil is at all time highs whereas the case discusses the opposite scenario, however since oil prices are at high level this affects almost all types of businesses. One way for businesses to lessen their dependence on oil consumption is to shift to using renewable energy, however how would you justify such a strategy using cost concepts? Share details on how you would explain such concepts to management who may not be familiar with cost concepts.
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