The treatment of joint costs, which has troubled the sector for decades, is an integral part of any study of accounting in the petroleum industry.
Taher treats joint costs and the problem of ‘transfer prices’ from one division of an international petroleum organisation to another as an essential element in determining the revenues to be assigned to each.
He also discusses the chemistry of hydrocarbons in order to supply the firm, factual foundation on the basis of which he can then erect a formal system of cost allocation.
About the Author
Abdulhadi H. Taher received his PhD in Business Administration from the University of California, Berkeley in 1964. He has worked in both the public and private sectors, as the former Director General of the Saudi Arabian Ministry of Petroleum and Minerals and as founder of the Aal Taher group. He lectured in Business Administration at King Saud University in Riyadh and has served as a board member of Aramco and governor of Petromin.