EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Chapter 21, Problem 6EYCT
a.
To determine
Job order costing is a cost evaluation method that considers each job separate and assign cost to them. It is mostly applicable in the service industry wherein every job has a separate requirement.
To state: The costs company faces due to accident.
b.
To determine
Job order costing:
Job order costing is a cost evaluation method that considers each job separate and assign cost to them. It is mostly applicable in the service industry wherein every job has a separate requirement.
To discuss: The way company could have reduced the cost of accident.
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Instructions
Answer the following Questions
Outline the costs that the company now faces as a result of the accident.
How could the company have reduced the cost associated with the accident?
On April 20, 2010, an explosion at BP PLC’s Macondo well in the Gulf of Mexico caused the largest oil spill and one of the worst environmental disasters in U.S. history. Because the incident occurred at the Deepwater Horizon drilling rig, this incident is often referred to as the Deepwater Horizon spill. Approximately 4.9 million barrels of oil were released, threatening the marine environment of the Gulf of Mexico as well as the environment and communities of the Gulf Coast region of the United States. In addition, 11 workers died and 17 were injured in the explosion. While BP bore primary legal responsibility for the spill, Transocean Corporation (the drilling rig operator) and Halliburton Company (the construction contractor) were also held partially responsible.
The spill’s financial costs to BP were enormous but also highly uncertain in the years that followed. Initially, the company incurred large costs to respond to the explosion and contain the spill. As time passed, the…
n April 20, 2010, an explosion at BP PLC’s Macondo well in the Gulf of Mexico caused the largest oil spill and one of the worst environmental disasters in U.S. history. Because the incident occurred at the Deepwater Horizon drilling rig, this incident is often referred to as the Deepwater Horizon spill. Approximately 4.9 million barrels of oil were released, threatening the marine environment of the Gulf of Mexico as well as the environment and communities of the Gulf Coast region of the United States. In addition, 11 workers died and 17 were injured in the explosion. While BP bore primary legal responsibility for the spill, Transocean Corporation (the drilling rig operator) and Halliburton Company (the construction contractor) were also held partially responsible.
The spill’s financial costs to BP were enormous but also highly uncertain in the years that followed. Initially, the company incurred large costs to respond to the explosion and contain the spill. As time passed, the…
Chapter 21 Solutions
EBK ACCOUNTING PRINCIPLES
Ch. 21 - Prob. 1QCh. 21 - Prob. 2QCh. 21 - Prob. 3QCh. 21 - Prob. 4QCh. 21 - Prob. 5QCh. 21 - Prob. 6QCh. 21 - Prob. 7QCh. 21 - Prob. 8QCh. 21 - Prob. 9QCh. 21 - Prob. 10Q
Ch. 21 - Prob. 11QCh. 21 - Prob. 12QCh. 21 - Prob. 13QCh. 21 - Prob. 14QCh. 21 - Prob. 15QCh. 21 - Prob. 16QCh. 21 - Prob. 17QCh. 21 - Prob. 18QCh. 21 - Prob. 19QCh. 21 - Prob. 20QCh. 21 - Prob. 21QCh. 21 - Prob. 22QCh. 21 - Prob. 1BECh. 21 - Prob. 2BECh. 21 - Prob. 3BECh. 21 - Prob. 4BECh. 21 - Prob. 5BECh. 21 - Prob. 6BECh. 21 - Prob. 7BECh. 21 - Prob. 8BECh. 21 - Prob. 9BECh. 21 - Prob. 10BECh. 21 - Prob. 11BECh. 21 - Prob. 12BECh. 21 - Prob. 1DIECh. 21 - Prob. 2DIECh. 21 - Prob. 3DIECh. 21 - Prob. 4DIECh. 21 - Prob. 1ECh. 21 - Prob. 2ECh. 21 - Prob. 3ECh. 21 - Prob. 4ECh. 21 - Prob. 5ECh. 21 - Prob. 6ECh. 21 - Prob. 7ECh. 21 - Prob. 8ECh. 21 - Prob. 9ECh. 21 - Prob. 10ECh. 21 - Prob. 11ECh. 21 - Prob. 12ECh. 21 - Prob. 13ECh. 21 - Prob. 14ECh. 21 - Prob. 15ECh. 21 - Prob. 17ECh. 21 - Prob. 18ECh. 21 - Prob. 19ECh. 21 - Prob. 20ECh. 21 - Prob. 1PSACh. 21 - Prob. 2PSACh. 21 - Prob. 3PSACh. 21 - Prob. 4PSACh. 21 - Prob. 5PSACh. 21 - Prob. 6PSACh. 21 - Prob. 7PSACh. 21 - Prob. 2EYCTCh. 21 - Prob. 5EYCTCh. 21 - Prob. 6EYCT
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