This brief amicus curiae does not address the merits of the predatory pricing allegation against BuyGasCo Corporation ("BuyGasCo"). It speaks only to the nature of the cost accounting system that we, as students of accounting, think to be appropriate for addressing the issues presented by cases of this general type.
We offer our views on this subject out of concern about the allocation of indirect costs used in assessing the appropriate gasoline cost value in State of Florida v. BuyGasCo Corporation, 2003-05143 (D. FL. 2003). We regard the allocation system employed in that opinion to be inconsistent with systems in common practice. Use of that system has a potential adverse effect on both the motor fuel retailing industry and the motor fuel market. It should not be employed in judging the issues in the Florida v. BuyGasCo dispute.
This brief aims to aid the court in constructing a more appropriate framework for resolving the indirect cost allocation issues presented by the case. Before proceeding with a discussion of this framework, it may be helpful to the court to know that we agree with the view expressed in the initial decision: that BuyGasCo's cost for regular grade gasoline exceeded their price.
We understand that the court is currently considering BuyGasCo's motion for appeal and that the motion relies heavily on the cost accounting system developed by Dr. J. T. Humboldt. Although we agree with the accuracy and fundamentals of Activity-Based Costing systems such as Dr Humboldt's, we disagree with his allocation methodology and calculations.
The Florida Motor Fuel Marketing Practices Act (MFMPA) determines motor fuel cost for non-refiners as the actual invoice price...
... middle of paper ...
... regular grade gasoline was sold at a $0.0021 loss.
Recommended Refined Costing Method
Cost Pool Driver Regular Plus Premium
($5,220) Gallons of Gas Sold 60.3% $3,148 22.4% $1,169 17.3% $903
2: Attendant Housing ($4,501) Gallons of Gas Sold 60.3% $2,714 22.4% $1,008 17.3% $779
3: Common Gasoline Dispensing
($15,388) Gallons of Gas Sold 60.3% $9,279 22.4% $3,447 17.3% $2,662
4: Grade Specific Gasoline Dispensing
($8,068) Number of Grades 33.3% $2,689 33.3% $2,689 33.3% $2,690
Total Cost $17,830 $8,313 $7,034
Cost Per Gallon $0.0521 $0.0654 $0.0716
Exhibit 6, continued
Price Direct Cost Indirect Cost Profit(Loss)
Premium $1.43 $1.22 $0.0716 $0.1384
Plus $1.36 $1.20 $0.0654 $0.0946
Regular $1.23 $1.18 $0.0521 ($0.0021)
For the reasons set forth above, the judgment of the hearing should be affirmed.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- When it comes to bass fishing, few places match Florida. Florida bass fishing anglers enjoy some of the most pristine areas in the country for bass fishing thanks to the efforts of the Florida State Park Service and the Florida Fish and Wildlife Commission. By enacting responsible licensing rules and size limits, the conservation services of The Sunshine State have made it possible for bass anglers to catch some of the nation's largest bass that have set records that are talked about throughout the bass fishing world.... [tags: florida wildlife commission, sea eagle]
620 words (1.8 pages)
- African slaves and the Indigenous people of the Southern United States and Northern Mexico were targets of harsh and racist treatment by both the European and American white colonizers. Due to the marginalization of African slaves and Native American peoples the question of how they responded to this oppression has hardly been explored by historians. Scholars have written extensively about the separate lives of both these groups of people, including their interactions with white Europeans, but less is known about how these two groups interacted with one another.... [tags: interactions in Florida, American history]
2863 words (8.2 pages)
- ... 2014.) Consequently, the behavior of the Everglades ecosystem and climate has also been modified by human innovation and urbanization. The creation of drainage ditches, levees, and increased agricultural land are all instances of rearrangement of the natural environments surrounding the tree islands in the swamplands of the Everglades and have resulted in changes of the tree island biota (Willard et al. 580-581). The main influence of these changes became evident in 1910 to 1930 as urbanization increased and agricultural land use demanded dryer land for farming.... [tags: Southern Florida diverse ecosystem]
1995 words (5.7 pages)
- Rationale: This design brief is intended to take into account the results of Heath’s VAST heuristic (relating to activities) (1989, in Elliott-Burns, 2003) and a selection of Lackney’s Design Principles (n.d.). Hennah’s (2007) concepts of traffic flow and layout will be incorporated. The design will also consider the requirements of integrating a guided inquiry pedagogy. The users of the space will also be given the opportunity to take part in the process. Heath’s VAST heuristic offers a “rich alternative” (p7, 1989, as cited in Elliott-Burns, 2005) to a checklist approach to designing and can be used to evaluate a learning space and lead to the design of a new one.... [tags: Design Brief]
2158 words (6.2 pages)
- Citation: Florida v. Jardines/ Supreme court of Florida/ 2013, 133 S. Ct. 1409 Facts: On November 2006 the Miami-Dade police department received an anonymous tip that the home of Joelis Jardines was been used to grow marihuana. On December 2006 two detectives along with a trained drug sniffing dog approached Jardines home. At the front door the dog signaled for drugs, as well as the detective who smelled the marihuana coming from inside. Detectives then wrote an affidavit and obtained a search warrant that confirmed the growth of marihuana in Jardine’s home.... [tags: Florida Supreme Court cases]
592 words (1.7 pages)
- The Overflowed Lands Act of 1850 approved 81,000 km2 of federal land to be given to the State of Florida, which marks the start of the economic history of southern Florida. The International Improvement Fund (IIF) then used these granted lands in 1855 to encourage development by means of land reclamation. Railroad and canal companies were then given land in an effort to make new lands accessible for colonization. In the late 1800’s, land drainage projects were headed by prosperous entrepreneurs and the first railroad completed its connection with Miami, serving to provide access to southern Florida.... [tags: Southern Florida, Economic History, Landscape]
941 words (2.7 pages)
- Florida Florida joined the union in 1845 as the 27th state in America, soon after it was named the sunshine state. Discovered by the Spanish, Florida has natural beauty to die for. When instated into the union Florida faced turmoil within the government due to the issue of slavery. Today Florida has natural wonders as well as manmade wonders like Disney World and Universal Theme park. Florida’s education system is very strong as well. Florida has many universities with great academic programs and great students.... [tags: american history, florida]
893 words (2.6 pages)
- The legends and songs tell many things about a culture and person. The only probably was people did not know the meanings of them or the origin. In 1935, President Roosevelt started Work Project Administration. The purpose was to make jobs during The Great Depression. The WPA mission was to bring people the history of the countries writing, “The WPA guides, or as they were known in the 1930s, the American Guides, were designed less to encourage tourism than to serve as histories”. (Bengal) The project head, Henry Alsberg, wanted writers like Zora Hurston and John Cheever, but Zora Hurston was one of the few with experience.... [tags: touring florida, dysfunctional marriage]
934 words (2.7 pages)
- As the deer fed at the marsh's edge, it's tail flickering as it nibbled tender and ripe green growth. Then the nervous animal pauses in it's feeding and lifted its head to listen. Whatever hint of danger the deer had sensed was ignored once the threat could not be located. It stamped a forefoot, lowered its head and began to eat once more, this deer had failed to detect a Florida panther that was downwind (going into the wind) crouched low in the underbrush. Amber eyes however, estimated the distance between himself and the deer.... [tags: Florida Panther Restoration]
1820 words (5.2 pages)
- Lodging inside the Walt Disney World complex, Celebration City (owned by Disney) and Lake Buena Vista (which is a small resort community right next to Disney World) The Disney World complex and Lake Buena Vista are located along Interstate 4 (I-4) about 25 miles west of Orlando International Airport and about 20 miles southwest of downtown Orlando, Florida. Lodging near the Convention Center and Sea World This is the larger of two convention centers in Orlando. Both the convention center and Sea World are located along International Drive.... [tags: essays research papers]
331 words (0.9 pages)