Exploring the adoption of activity-based costing in selected South African crude oil refineries
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Authors
Makhaza, Sanelisiwe Peacefull
Issue Date
2022-02
Type
Dissertation
Language
en
Keywords
Activity-based costing , South African petroleum industry , Crude oil refineries , Indirect cost , Optimisation , Refinery process , Regulated industry , Product-mix decision , Umsebenzi ogxile ekufakeni izindleko , Imboni yokusawoyela eNingizimu Afrika , Izikhungo zokuhluza uwoyela ongahluziwe , Izindleko ezingaqondile ngqo , Ukucoliseka , Izinhlelo zezikhungo zokuhluza , Imboni ehambisa ngokolawulomthetho , Izinqumo ezixubile zemikhiqizo , Go hlakanya ditshenyagelo go ya ka mošomo , Intasteri ya petroleamo ya Afrika Borwa , Bohlwekišetšo bja oli ye tala , Ditshenyagelo tše di iphihlilego , Kaonafatšo, tshepedišo ya bohlwekišetšo , Intasteri ye e laolwago , Diphetho tša motswako wa setšweletšwa
Alternative Title
Abstract
The South African petroleum industry is regulated, with the Department of Energy stipulating import parity as refinery product costs. Refineries may not have an exact view of actual product cost and may base decisions on deemed costs. Prior literature has not addressed refinery processes or activity-based costing in regulated environments. This study aimed to explore the opinions of selected refinery managers on refinery processes and activity-based costing adoption to inform optimal product mix decisions for selected regulated products. The empirical analysis based on semi-structured interviews determined that even though refineries allocate indirect costs to products based on volume, product mix decisions are based on the regulated price. Although the findings support activity-based costing adoption, this may not be conducive in regulated environments. Further research is required on the relationship between activity-based costing and price regulation, and how activity-based costing may impact the optimisation of the crude oil refinery value chain.
Description
Abstracts in English, Zulu and Sesotho