Discussion Paper 2013

Essay by anna35College, Undergraduate November 2014

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Developments in Activity Based Techniques-BP America

John Bishop, Corporate Controller of BP America, gazed out his office window on the 37th floor of the BP America Building, admiring the activities of the ice breakers that were clearing the shipping lanes on Lake Erie. He was contemplating this year's upcoming negotiations between the "businesses" and the "staff departments" to determine the costs of, and responsibility for, centrally provided services. (See Figures 3-1 and 3-2 for lists of businesses and staff departments.) His thoughts faded to last year, which saw the beginning of the end of the old cost allocation system and the dawning of a new, more imaginative and innovative process for managing corporate charges. He was trying to imagine how this year's procedure would differ from last year's, what guidelines to use to judge its success, and what new problems possibly could arise.


BP America Businesses

BP Exploration

BP Nutrition

BP Oil

Carborundum Division

BP Chemicals

BP America Ventures

BP Advanced Minerals

Research and Development

BP Titanium Minerals

Chase Brass

BP Minerals


BP Coal


BP America Staff Departments








Administrative Services

Information Management

Other Administrative and Information Services

Human Resources

External Affairs - Cleveland

Federal Government Affairs

State Government Affairs

Public Affairs

Patent and License

Health, Safety, and Environmental Quality


BP America was formed from the combination of Standard Oil and BP North America.

The original link between BP and Standard Oil was forged in 1970 when, in exchange for an increased shareholding in Standard Oil, BP transferred to the company its crude oil leases at Prudhoe Bay on the North Slope of Alaska, along with some other upstream and downstream assets. That arrangement brought together BP's large oil reserves in Alaska and the marketing expertise of...