I. Objectives of the BriefThis amicus curiae brief does not address the merits of the predatory pricing allegation against BuyGasCo Corporation (“BuyGasCo”). It speaks only to the nature of the cost accounting system that we, as students of accounting, consider appropriate for addressing the problems presented by cases of this general type. We present our point of view on this subject out of concern for the distribution of indirect costs. costs used to assess the appropriate value of the cost of gasoline in State of Florida v. BuyGasCo Corporation, 2003-05143 (D. FL. 2003). We consider that the distribution system used in this opinion is incompatible with the systems in current practice. The use of this system could have a negative effect on both the automotive fuel retail industry and the automotive fuel market. It should not be used to judge issues related to the Florida v. United States dispute. BuyGasCo. This brief aims to help the court construct a more appropriate framework to resolve the indirect cost allocation issues presented by the case. Before proceeding with a discussion of this framework, it may be helpful to the court to know that we agree with the view expressed in the original decision: that BuyGasCo's cost for regular gasoline exceeded its price. We understand that the court is currently reviewing BuyGasCo's decision. motion on appeal and that the motion relies heavily on the cost accounting system developed by Dr. JT Humboldt. While we agree with the accuracy and fundamentals of activity-based costing systems such as Dr. Humboldt's, we disagree with his allocation methodology and calculations.II. Background The Florida Motor Fuel Marketing Practices Act (MFMPA) determines the cost of fuel to non-refiners as the actual price charged...... middle of paper ...... regular grade gasoline has been sold at a loss of $0.0021. Recommended Exhibit 6 Refined Costing MethodologyCost Pool Driver Regular Plus Premium1: Labor ($5,220) Gallons of Gas Sold 60.3% $3,148 22.4% $1,169 17.3% 9,032 $: Attendant's accommodation ($4,501) Gallons of gasoline sold 60.3% $2,714 22.4% $1,008 17.3% $7,793: Common gasoline distribution ($15,388) Gallons of gasoline sold 60.3% $9,279 22.4% $3,447 17.3% $2,6624: Distribution of gasoline by category ($8,068) Number of categories 33.3% $2,689 33.3% 2 $689 33.3% $2,690 Total cost $17,830 $8,313 $7,034 Cost per gallon $0.0521 $0.0654 $0.0716Exhibit 6, continuedPrice Direct cost Indirect cost Profit (Loss)Premium 1, $43 $1.22 $0.0716 $0.1384Plus $1.36 $1.20 $0.0654 $0.0946 Regular $1.23 $1.18 $0.0521 ($0.0021) VII. ConclusionsFor the reasons stated above, the judgment of the hearing must be confirmed.