Destron Petroleum Services: Bidding for a Project

Name: Destron Petroleum Services: Bidding for a Project (English version)
SKU: 9B18B006

Saadia Irfan

Product #:9B18B006

Supplier:Ivey

Discipline:Accounting, International Business

Setting:Pakistan, 2016

Details:Case (PDF) • 6 pages • 2018-06-08

Subjects:

Finance and investing Business management Accounting International business

Geography:

Pakistan Asia

Your Price:

$10.54

Purchase this material with a free Educator Account and enjoy more benefits:

Free Educator Copy
Free Teaching Notes
Build your coursepack
Discounted academic price

Destron Petroleum Services (DPS) was an oil drilling contractor that had just won a bid to provide a land drilling rig on a rental basis to a major oil producing company in Pakistan. The case outlines how the company projected all of its costs related to the project and finally quoted a price for the project to the client.

Learning Objectives

This case is suitable for an introductory management accounting class at both the undergraduate and graduate levels. The case is designed to introduce students to the NPV technique and job costing method in the context of an oil service company. After working through the case and assignment questions, students will be able to do the following:

Understand the function of each department in a service company’s value chain.
Conduct a project appraisal using the net present value (NPV) technique.
Understand the ethical issues involved in a bidding process.
Apply the job costing technique.
Identify the risks of the project.