Since the closure of the Northern Power Station, South Australia has experienced a series of significant power interruptions including a state-wide disruption in 2016 which severely affected telecommunications, hospital services, and traffic control. This event has highlighted the precarious nature of South Australia's energy supply which relies, in a substantial part, on the interconnector to Victoria. South Australia has also seen significant variations to the pricing for businesses, with wholesale prices peaking at $18,000 per kilowatt hour, far exceeding prices in other states.
Critically discuss:
1.)
What management accounting tools or techniques could these businesses use to determine the financial impact of the current South Australian situation? (250-280 words , 2 refrences )
a What recommendations could be made for the control of this cost?
b What is the effect of fluctuating electricity prices and intermittent interruptions to supply for small to medium businesses?
c What management accounting tools or techniques could these businesses use to determine the financial impact of the current South Australian situation?
2.)Make an conclusion based on case study(QUESTIONS 1) AND from these 3 questions stated above(a,b and c) ( 80-100 words )
Sample Solution