Advanced Topics in Management Accounting and Control
The purpose of this paper is to analyze the economic situation of the company Macedonian Shipping and give a recommendation whether the company should use the motor vessel Tashtego as a freight tender beween Dar-es-Salaam and Zanzibar in East Africa or as a tapioca ship between Balik Papan and Singapore in the East Indies.
Fundamental to all these considerations are measurement issues. Financial measures, in particular, cost measures, are needed to evaluate alternate strategies on whether to introduce a new product or service line, to determine the appropriate sale price and the consequent market position for the firm’s product.
“Contribution” …show more content…
Large vessel: Portage (12500*0.14*3=5250) + (12500*0.2*1*2=5000) = $ 10250.
Costs for Lighthouse at both ports has to be summarized:
Tashtego: Lighthouse 73 + 126 = 199
Large vessel: Lighthouse 73 + 2*126 = 325
In Singapore the portage and lighthouse costs for large vessels has to be considered double (x2) as big ships called at Balik Papan have to stop twice at Singapore.
As only ships exceeding 8000 tons burden were to be assessed $ 2.000 no costs for Special Assessment for Tashtego have to be considered.
Summarizing these figures we get the total trip costs for a roundtrip for each vessel.
Adding the bunkering costs (fuel costs) which are ($ 0,73*960 miles)= 700,80 and ($ 1,27*960 miles)= 1219,20 we get the Incremental trip costs for one roundtrip for the Tashtego and for a large vessel.
3. Incremental trip costs of a roundtrip | | | TASHTEGO | | | | | BP-SP Tapioca | SP-BP goods | Roundtrip | Trip costs | | | | Portage dues/ton/day in port | 0,14 | 0,20 | | Portage dues | 1.575,00 | 900,00 | 2.475,00 | Lighthouse | 73,00 | 126,00 | 199,00 | Special Assessment | 0,00 | 0,00