Reference no: EM13183391
Part-1
Please respond to the following questions of implementing activity data-driven cost components for Health Care.
What steps are involved in planning the costing framework?
How much time should be expended on account review?
What is fixed cost as defined for Activity-Based-Costing("ABC")
What variable cost is as defined for Activity-Based-Costing?
What direct cost is as defined for Activity-Based-Costing?
What indirect cost is as defined for Activity-Based-Costing?
Part 2.
Wagner Hospital is trying to decide whether to add a new service to their wide mix of services. The new service would be done in the existing hospital emergency department and would require no remodeling. Wagner's accountant, Mr. Beame, has prepared a projected financial report showing a $100,000 loss for the service. He is therefore against the new service. However, Dr. Koch of the emergency department points out that the report allocates $100,000 of existing operating room depreciation and $50,000 of the salary of existing administrators to the new service.
A. Based on the information given here, should the hospital undertake the new service? Briefly, why or why not?
B. Regardless of your answer to Part a, assume that the chairman of the board of trustees, D. Dinkins, insists that we offer the service. Should the emergency department have to bear the loss? If yes, explain why. If no, what alternative would you suggest? Will that alternative be fair and acceptable to other department heads? Be as brief as possible.
|
State a voltaic cell is constructed by immersing a strip
: A voltaic cell is constructed by immersing a strip of silver in a 1.0M AgNO3 solution and a strip of cadmiun metal in a 1.0M Cd(NO3)2 solution. The circuit is completed by a wire and a salt bridge in the usual way. What is the cell potential for t..
|
|
Compute the firms predetermined overhead rate
: Why is calculating the predetermined overhead rate so important and compute the firm's predetermined overhead rate.
|
|
Compute the amount of energy
: Calculate the amount of energy (in Kj) necessary to convert 317g of liquid water from 0*c to water vapour at 172*c. The molar heat of vaporization of water is 40.79kj/mol.
|
|
State calcium carbonate from potassium carbonate
: Write the balanced reaction equation for the precipitation of calcium carbonate from potassium carbonate and calcium chloride.
|
|
What is fixed cost as defined for activity-based-costing
: What steps are involved in planning the costing framework, how much time should be expended on account review and what is fixed cost as defined for Activity-Based-Costing("ABC"
|
|
Income statement and its lack of importance
: Who cares about the income statement? It's just a bunch of inaccurate stuff loaded with estimates." Do you agree with your friend's remarks about the income statement and its lack of importance? Explain why or why not.
|
|
What is the multiplier for a lump-sum tax
: What is the equilibrium level of income? Is there an inflationary or a deflationary gap? Why? What is its magnitude? What is the value of the government expenditures multiplier? What is the value of G that would move the economy to full employment ..
|
|
Determine profit-maximizing price and level of production
: You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 - 4P and C(Q) = 124 - 16Q + Q2 a. Find the inverse demand function for your firm's product. b. Determine the profit-maximizing price ..
|
|
What is the individuals optimal consumption
: Consider an economy composed of identical individuals who live for two periods. These individuals have preferences over consumption in period 1 and 2 given by U = (c1)0.5 × (c2)0.5. They receive an income of 100 in period 1 (young) and 20 in perio..
|