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Unk The costs of the Accounting Department at Central Hospital would be considered by the Surgery Department to be: A. a) direct costs. B. b) indirect costs. C. c) incremental costs. D. d) opportunity costs. E. e) sunk costs.

Create a cross volume profit chart. Select an item or product used in an healthcare organization and describe how you would calculate the break - even point. Describe why this break - even information is useful.

how do you use a functional-based approach to figure out a cost per patient day in a hospital?

Regression; choosing among models. Apollo Hospital specializes in outpatient surgeries for relatively minor procedures. Apollo is a nonprofit institution and places great emphasis on controlling costs in order to provide services to the community in an efficient manner. Apollo’s CFO, Julie Chen, has been concerned of late about the hospital’s consumption of medical supplies. To better understand the behavior of this cost, Julie consults with Rhett Bratt, the person responsible for Apollo’s cost system. After some discussion, Julie and Rhett conclude that there are two potential cost drivers for the hospital’s medical supplies costs. The first driver is the total number of procedures performed. The second is the number of patient-hours generated by Apollo. Julie and Rhett view the latter as a potentially better cost driver because the hospital does perform a variety of procedures, some more complex than others. Rhett provides the following data relating to the past year to Julie.…

Discuss how cost accounting can be utilized to support healthcare organizational strategic decisions and goals related to departments, facilities, and services.

How can cost accounting be utilized to support healthcare organizational strategic decisions and goals related to departments, facilities, and services.

Projected Revenues by Patient Services Department Routine Care Laboratory Radiology Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration and financial services is patient services revenue, while the cost driver for facilities is space utilization. a. What are the appropriate allocation rates? b. Use an allocation table similar to Exhibit 6.7 to allocate the hospital's overhead costs to the patient services departments. Total revenues Projected Costs for All Departments Patient Services Departments (Direct Costs): Routine Care Laboratory Radiology Total costs Support Services Departments (Overhead Costs): Financial Services Facilities Housekeeping General Administration Human Resources Total overhead costs Total costs of both patient and support services Projected profit EXHIBIT 6.7 Kensington Hospital: Final Allocations Support Department (allocation rate) Financial Services ($0.05556) Facilities Housekeeping…

Standard costs are divided into which of the following components? A. price standard and quantity standard B. quality standard and quantity standard C. variance standard and quantity standard D. materials standard and labor standard   Which of the following activity bases would be the most appropriate for food costs of a hospital? A. how many MRI's are taken B. number of patients who stay in the hospital C. quantity of prescriptions filled D. number of nurses scheduled to work   To calculate income from operations, total service department charges are A. subtracted from operating expenses B. subtracted from income from operations before service department charges C. subtracted from gross profit margin D. added to income from operations before service department charges

Describe the importance of Revenue Cycle Management and the impact it can have on the healthcare organization

Which of the following will give you the most accurate allocation between a cost's fixed component and variable component? a. Examination of a students’ registration forms for miscellaneous fees and tuition fees b. Use of the least squares method to allocate the cost of electricity c. Dividing the total cost on the water bill among the different departments based on direct labor hours d. Dividing the total cost of the postpaid plan using the high-low method

Which of the following activity bases would be the most appropriate for food costs of a hospital? a.quantity of prescriptions filled b.how many MRI's are taken c.number of nurses scheduled to work d.number of patients who stay in the hospital

Identifying Direct and Indirect Costs Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics. Required: For each cost incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object by placing an

Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics.Required:For each cost incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object by placing an X in the appropriate column.

partial list of Foothills Medical Center’s costs follows:a. Cost of laundry services for operating room personnelb. Salary of intensive care personnelc. Depreciation on patient roomsd. Cost of blood testse. Nurses’ salariesf. Cost of patient mealsg. Overtime incurred in the Patient Records Department due to a computerfailureh. Operating room supplies used on patients (catheters, sutures, etc.)i. Doctor’s feej. Cost of X-ray testk. Cost of maintaining the staff and visitors’ cafeterial. Cost of drugs used for patientsm. Cost of intravenous solutions used for patientsn. Cost of improvements on the employee parking loto. Salary of the nutritionistp. General maintenance of the hospitalq. Cost of advertising hospital services on televisionr. Cost of new heart wings. Training costs for nursest. Depreciation of X-ray equipmentu. Utility costs of the hospital Instructions1. What would be Foothills Medical Center’s most logical definition for the final cost object? Explain.2. Identify whether…

the book I use for study: Horngren's Cost Accounting: A Managerial Emphasis, 16th edition, Global Edition. Questions in image Request Compute: direct method and step method

Comprehensive Care Nursing Home is required by statute and regulation to maintain a minimum 3 to 1 ratio of direct service staff to residents to maintain the licensure associated with the Nursing Home beds. The salary expense associated with direct service staff for the Comprehensive Care Nursing Home would most likely be classified as: 1. Variable cost. 2. Fixed cost. 3. Overhead costs. 4. Inventoriable costs.

Case Questions and Answers  1. Identify the services and/or programs to be included in the cost and profitability analysis. Infant childcare Toddler childcare Pre-K childcare Rent - School district Rent - Head Start 2. Examine the costs listed in Table 2. a. Identify the direct costs associated with each service or program. Labor costs are the only direct costs associated with the programs. Food costs would be direct costs to the kitchen area but indirect to the end services. b. Which costs would be organization- or facility-sustaining costs? Provide an argument for or against assigning these costs to services or programs. The costs that would be considered to be organizationsustaining costs include depreciation, building insurance, and interest expense on the mortgage debt. Both ACDC and the tenants use the facility and, thus, should participate in the costs associated with acquiring the space.  3. Identify the broad activity categories and create cost pools by assigning the costs…

Your organization has opened a walk-in clinic.  A list of expenses has been given to the new staff accountant, Marvin, from the walk-in clinic manager and Marvin needs your help.  Marvin wants you to help him identify whether costs shown in the table below are direct or indirect.  Additionally, Marvin would like you to describe: 1.  The difference between direct and indirect costs. 2.  The "rule of thumb" for recognizing direct costs. 3.  Update the direct and indirect columns by placing an X in the appropriate column. 4.  The monetary total of direct and indirect costs.  Item Cost Direct Indirect IT Salaries and Benefits $1,500     RN Salaries and Benefits $9,600     Utilities and Telephone $3,000     Carpets $1,000     Magazine Subscriptions $     50     Vehicle Expense $1,775     Exam Table $5,500     End Tables $   500     Coffee Tables $1,400     Facility Insurance $   650     Staff Uniforms $1,200     Cleaning Supplies $   200     Desk Lamps $   150…