Case analysis – Cheap Research Essays

Case analysis

1. Calculate the UOC per barrel for SO. 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. (8
marks)
2. Compute the cost of the activities in the “Provide IT and Telecommunication Services”
process. What items did you include or exclude from your calculations? Why? (7 marks)
3. Suggest some performance measures to evaluate whether these activities are being
performed well. (7 marks)
4. Calculate the UOC per barrel for each process in the Business Management department.
(10 marks)
5. How would you use the activity analysis and the activity cost data that you developed to
improve operation and better manage costs? (8 marks)
Table 5 – Cost for Business Management Processes for 2000
ft
Aaivmes Performed Cost Activities performed Cost

5319“ vendors I20 Assess risks 75
Purchase goods and services 257 Prepare mitigation plans 75
warehouse and issue goods 355 Document internal controls 50
Ton“ 732 Develop & implement controls 100
Prepare Economic Plans Audit balances and controls 225
Update review portfolio opportunities [75 Provide advice 50
Update review hydrocarbon resource plan l75 Total 575
Prepare update business plan 250 Provide lT & Telecommunication
Services
Review performance [20 Select, install, operate, support hardware
and software
Obtain approval 2 lo Provide sap support ‘7
Total 930 Provide telecommunications
Provide Financial Services Total
Manage funds 1,192 Market/Trade Hydrocarbons
Execute accounting 1,037 Plan marketing strategy 55
Provide financial reports 683 Market hydrocarbons 78
Provide specialist services & reports 997 Deliver hydrocarbons 320
Total 3,909 Total 453