London Water (A)

Name: London Water (A) (English version)
SKU: 9B15B009

Vaughan S. Radcliffe; John G. Wilson; Denise Brunsdon

Product #:9B15B009

Supplier:Ivey

Discipline:Accounting

Setting:Canada, 2013

Details:Case (PDF) • 9 pages • 2015-09-15 (Rev: 2016-03-23)

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In 2013, London Water, the water system of the City of London, Ontario, has run deficits for eight of the past nine years, leading to significant pressure to pull the organization out of the red. The Water Engineering Division manager knows that something needs to change. Overhauling the rate structure is an attractive option; however, myriad political, economic and environmental issues are at play. Moreover, as steward of one of the city’s most important utilities, the manager needs to determine the best course of action, ideally a solution that will work in both the short run and the long run. See supplement case 9B15B010.

Learning Objectives

London Water Case A focuses on managerial accounting, particularly introductory issues regarding fixed costs versus variable costs. Case A assesses the complex issues at play when a rate restructuring affects many stakeholders, such as a change to publicly administered resources. Students will explore the patchwork, short-, medium- and long-term solutions. Case B requires that students use introductory statistical tools to determine the success of the new rate structure. Both cases together address two important issues — long-term stewardship and public sector management.

London Water (A)

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Learning Objectives