SERVICE COSTING AND APPLICATION TO ELECTRICITY RETAILERS IN AUSTRALIA
TASK 1
INSTRUCTIONS
Read attached journal articles, as these articles will get you started.
This assignment requires you to extend your knowledge about Service Costing to the retail Electricity providers in Australia. At present there is an ongoing debate about the rise in electricity prices in Australia. In this assignment you will apply your knowledge of Service Costing to gain an understanding of the difficulties inherent in costing retail electricity services. You must take into accountthe current service costing practices in the industry and highlight the difficulties in relation to electricity retailing.
(1) Describe the current industry practice in costing electricity supply
(2) You must critically evaluate the application of Service Costing to Electricity retailers
(3) Further marks are awarded for presentation, structure and writing
(4) Additional marks will be awarded for following the Harvard referencing guidelines
TASK 2
CASE 6.46 (Spicer and Rabbit Accounting Firm) in your text book. Please view the attached Excel sheet for the case and answer ONLY the FIVE questions listed.
Required:
1. Calculate the predetermined overhead rate per dollar of professional labour.
2. Explain how the firm can justify using a single overhead rate to cost each case.
3. Use the information in the time sheets to prepare a client cost sheet for the Jazz Industries investigation, similar to that in Exhibit 6.8.
4. Determine the total cost of the investigation.
5. Spicer and Rabbit operate in a very competitive market and cannot always charge clients prices sufficient to cover the full cost of undertaking a case. In the light of this information: How could John House justify undertaking the investigation of the jazz industries for a loss?
1500 Words: (Introduction 100;Body1300;Conclusion 100)
Attachment:- Service Costing Assignment.zip