Strategic Cost Allocation and Transfer Pricing at Shell

Requirements:

1. Develop a cost allocation strategy for Shell's global operations, including upstream and downstream oil and gas activities.

Cost Allocation Strategy	Allocation Basis	Implementation Plan
Exploration and Production	Reserves and drilling complexity	Cost categorization and operational metrics
Refining and Marketing	Production volume and market dynamics	Activity-based costing and price variance analysis
Distribution Costs	Shipping distance and logistics	Route optimization and logistics network analysis

2. Determine transfer pricing mechanisms for inter-regional transactions to optimize tax efficiency and divisional profitability.
3. Evaluate the impact of cost allocation strategies on Shell's financial performance and operational effectiveness.
4. Recommend transfer pricing policies aligned with Shell's strategic goals and regulatory compliance.