+1 862 207 3288 A Belgian chocolate maker, part of bigger multinational food company, is considering purchasing a small vessel to import cocoa from
western Africa.
A dry bulk ship will have to make the return trip carrying ballast; a general cargo could carry some of its parent company’s products (but
not dairy products, which means it might have to undertake return trips below maximum capacity); a breakbulk reefer would guarantee
maximum utilisation of the ship’s capacity.
You are asked to consider the yearly costs (Bunkering, Operational, Insurance, Port etc.) for 3 handysize vessels (dry, general, reefer)
operating on the Abidjan-Antwerp route. Most of these costs can be quantified using Drewry’s Ship Operating Costs Annual Review and
Forecast, available in the library.
Your report is expected to include an appendix table summarizing the associated costs in a single page for easy comparison, as well as a
recommendation based on said cost comparison.
1.Indroductiion
• 1.1 restating the assignment
• 1.2 Why use management accounting (not use the same title)
• 1.3 Which management accounting method to use?1.4 variable costing
• 1.5 full costing (much more detail) not profit per product
2. Theory & definitions
2.1 Relevant cost / Variable / fixed costs,(semi-variable)? (references reading list accounting book Accounting manual)
2.2 Shipping costs (reference stopford)
2.3MORE DEFINITION AND THEORY: INFORMATION RELEVANT TO THE CARGO! (COCO AND PROCECING FOOD ON …EXAMPLE TITLE)=REFEREMCE: (ilaw website
info about cocoa cargo +steel ING? +many others + phosphate+ agriculture bulkers+
2.4 Particularities of the 3 ships (relevant) references: BRANCH
3.Application&Figures
3.1 Variable ship costs
3.2 Fixed Ship Costs(02.11.2015 FIND THE OPEX IN PORTAL)
* all ships have the same size –handysize vessels -height of the ships is not relevant
Bulker- general cargo
4. Conclusion and recommendations
IF THE RETURN SHIP CARRY their PRIODUCT IF IT COVER THE RETURN TRIP CHOOSE A CHEAPER METHOD + APPENDIX WITH NUMBER
