Accounting Analysis - PDF

Added on - 21 Apr 2020

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Running head: ACCOUNTING ANALYSISAccounting AnalysisStudent’s Name:University Name:Author Note
1ACCOUNTING ANALYSISTable of ContentsTask 1.........................................................................................................................................2Executive Summary...............................................................................................................2Introduction............................................................................................................................2Discussion..............................................................................................................................3Recommendations..................................................................................................................4Conclusion..............................................................................................................................4References..............................................................................................................................5
2ACCOUNTING ANALYSISTask 1Executive SummaryThis particular study aims to provide an overview into the cost allocation technique ormethod adopted by a particular organization. The methods used by a particular firm in orderto allocate the cost, depend on the nature of business undertaken by the particular company.The company that has been chosen for the purpose of the study is SA PowerNetworks. SA Power Networks maintains and operates the distribution of electricity in SouthAustralia and serves 825,000 industrial, commercial and residential customers all overAustralia.The primary purpose of this document is investigation of the method that isestablished by the company for the purpose of allocating or attributing costs incurred inrelation to power or electricity consumption of the company.IntroductionThe fundamental kind of costing technique that is utilized for the purpose ofallocating costs is activity based costing. But the method of costing primarily depends uponthe nature of business that is undertaken by the organization. However whatever may be thebusiness, it is mandatory for companies in the energy sector to produce the cost allocationmethod that is adopted by the organization. It is a mandatory principle that each distributionnetwork service provider must disclose the particular methods of cost allocation to theAustralian Electricity Regulator for the purpose of being approved by it. The cost allocationmethod that is adopted by the SA Power Networks in order to allocate the electricity cost hasbeen discussed in this particular study. Standard Control Services includes the provision ofcapability of the network and operation and maintenance of the distribution system.
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