Cocos Corporate Strategy Essay Example

other. Dry.

Humboldt includes a kiosk in his analysis because Buybacks identifies housing attendants as a primary activity involved in selling gasoline. Furthermore, Buybacks also states that a kiosk is required to house these gasoline sales attendants.

Therefore, in order to establish true costs of selling gasoline, kiosks must be considered because it houses the sales attendants that are needed in order to sell gasoline. Cost Hierarchy In a cost hierarchy, activities are classified into four categories: unit-level, batch-level, reduce-level, and organizational-level.

A unit-level activity occurs each time a unit of product is produced. An example off unit-level activity would be the cost of the actual crude oil needed to make gasoline. Batch-level activities occur for each batch of product that is produced. In this case, labor and kiosks would be examples of costs related to batch-level activities.

Product-level activities are specific to the product being produced. An example would be equipment used specifically for each grade of gasoline. Organizational-level activities maintain general capabilities.

An example of a cost in this case that is associated with organizational-level activities is rent. Dry. Humboldt BBC Analysis Dry.

Humboldt analysis of the data provided by Buybacks using the Activity-Based Costing (BBC) method, yields results that seem to be a mixture of what the plaintiff and defendant had initially determined. The reasoning behind this outcome is because in the BBC method, what Dry. Humboldt does is, similar to the plaintiffs method, he determines that the costs should be associated with each grade of gasoline based on the volume sold.

So what he does is he identifies the different activity costs pools and determines Just how much of each of these activity cost

pools can be attributed to each grade of gasoline: regular, plus, and premium.

However, Nat drives the cost for each grade down in comparison to the plaintiffs findings is the different activity drivers as shown in Exhibit 9 of the case. Recommendation/Conclusion In conclusion, I believe that in the matter of Justice and pursuing all that is correct, the injunction should be lifted.