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Cost implication of BP gulf oil spill

Cost Identification and Implications

The oil spill in the Gulf of Mexico and BP's response are costly in many respects. Some of those costs were realized immediately, while others will continue to be recognized for years to come.

Identify the cost implications of the spill and how best they might be recognized by BP (and others). Should the accountant take a positive approach or a normative approach when trying to quantify the costs? How can accountants assume a proactive role in shaping the strategic decision making?

about 500 words, no references

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Immediate costs to the company can be provided through the proactive role of the company accountants. Announcements of responsibility to the public and internet and television advertisements must all be funded immediately to help protect the public image of the BP company. Updated versions of the website regarding the spill will be needed for years to come as well.

Taking a positive approach to funding the immediate clean-up of the spill will help with public image, too. These funds must be provided to the areas affected by the spill and administered carefully so that as much help with the environment as possible is realized. Goverment funding for disaster areas will also be available and by providing necessary office space for the issuance of such funding, BP can help their public image again.

Costs for the fishermen affected by the spill must be attended to immediately while funding for their loss of ...

Solution Summary

This response looks for a cost identification and implication for the Gulf of Mexico oil spill by the BP offshore oil drilling rig.