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English: Costa Concordia Polski: Statek pasaże...


In September this year, the stranded cruise liner Costa Condoria was finally uprighted as a cost of €600m plus. According to press reports, the ships owners “are not driven by the financials”. I guess they could not be, given the very scenic nature of the area and the apparent beahviour of the ship’s captain.  In Chapter  13, we cover relevant costs, and like most basic management accounting techniques, we most on the monetary costs.  In other chapters, we cover qualitative factors in decision-making and mention other costs which are perhaps less monetary in nature.  The Costa Concordia is a good example of many management accounting issues coming together. First, we might ask would the salvage be worthwhile from a cost view to salvage the ship. I would guess the answer would be no, as the relevant salvage cost of €600m are likely to exceed the scrap revenues.  Second, we could think about what other costs and benefits need to be considered in the salvage decision – lost revenues from future tourism in the area, the enviromental costs etc. Third, if there a life cycle costing consdieration here? Perhaps scrapping a ship at the end of its useful life is a life-cycle cost, but I get the feeling the life of the Costa Condoria  was shorter than expected.




See more here from The Guardian.




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