Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Textbook Question
Chapter 27, Problem 1MAD
Make a Decision
Lean Performance for Nonmanufacturing
Analyze Northern Highlands Hospital
Northern Highlands Hospital is evaluating its admissions process by measuring the time elapsed between patient check-in and arrival in the clinical area. The present process involves a patient checking in at a centralized area and providing information to an admissions specialist. After being admitted, the patient is escorted from the admissions area to the appropriate clinical area in the hospital. Average lead time information is as follows:
The hospital staffs one person at check-in and one person at the admissions desk. There is one dedicated escort.
- a. Determine the non-value-added lead time in this process.
- b. Determine the value-added ratio of this process.
- c. Identify some areas where the hospital could make improvements to increase the value-added ratio of this process.
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Pareto chart and cost of quality report for a service company
The administrator of Liberty Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows:
Activities
Activity Cost
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$ 6,500
Verifying patient information
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13,000
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Transporting patients
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14,500
Searching for equipment
8,200
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17,000
Counting supplies
19,000
Looking for supplies
8,200
Staff training
4,800
Total
$160,000
a.
b.
c.
d.
Classify the…
Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients:
Treating patients
Providing hygienic care
Responding to requests
Monitoring patients
Required:
Normal
Intensive
Driver
Normal
Treatments
Intensive
Hygienic hours
Requests
Monitoring hours
Patient Category
Normal Intensive
7,900
1. Determine the total nursing costs assigned to each patient category.
Costs Assigned
per patient day
per patient day
4,800
32,000
6,000
8,000
19,100
80,000
72,000
Activity Rate
$4.00
5.00
2. Output is measured in patient days. Assuming that the normal patient category uses 8,000 patient days and the intensive patient
category uses 6,400 patient days, calculate the nursing cost per patient day for each type of patient. Round your answers to the nearest
cent.
2.00
3.00
Which of the following activity bases would be the most appropriate for food costs of a hospital?
a.quantity of prescriptions filled
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d.number of patients who stay in the hospital
Chapter 27 Solutions
Financial And Managerial Accounting
Ch. 27 - What is the benefit of the lean philosophy?Ch. 27 - What are some examples of non-value-added lead...Ch. 27 - Why is a product-oriented layout preferred by lean...Ch. 27 - How is setup time related to lead time?Ch. 27 - Why do lean manufacturers favor pull or make to...Ch. 27 - Why would a lean manufacturer strive to produce...Ch. 27 - How is supply chain management different from...Ch. 27 - Why does lean accounting result in fewer...Ch. 27 - Why do lean manufacturers use a raw and in process...Ch. 27 - Why is the direct labor cost category eliminated...
Ch. 27 - Prob. 11DQCh. 27 - What is the benefit of identifying non-value-added...Ch. 27 - In what ways can the cost of a process be...Ch. 27 - Lead time Blues Inc. manufactures jeans in the...Ch. 27 - Prob. 2BECh. 27 - Lean accounting The annual budgeted conversion...Ch. 27 - Cost of quality report A quality control activity...Ch. 27 - Process activity analysis Roen Company incurred an...Ch. 27 - Lean principles The chief executive officer (CEO)...Ch. 27 - Prob. 2ECh. 27 - Lean principles Rag Swag Inc. manufactures various...Ch. 27 - Lead time analysis Furry Friends Inc. manufactures...Ch. 27 - Reduce setup time Vernon Inc. has analyzed the...Ch. 27 - Compute lead time Jackson Fabricators Inc....Ch. 27 - Calculate lead time Williams Optical Inc. is...Ch. 27 - Suppy chain management The following is an excerpt...Ch. 27 - Employee involvement Quickie Designs Inc. uses...Ch. 27 - Lean principles for a restaurant The management of...Ch. 27 - Accounting issues in a lean environment Eon...Ch. 27 - Lean accounting Westgate Inc. uses a lean...Ch. 27 - Lean accounting Modern Lighting Inc. manufactures...Ch. 27 - Lean accounting Vintage Audio Inc. manufactures...Ch. 27 - Pareto chart Meagher Solutions Inc. manufactures...Ch. 27 - Cost of quality report A. Using the information in...Ch. 27 - Pareto chart for a service company Three Rivers...Ch. 27 - Cost of quality and value-added/non-value-added...Ch. 27 - Process activity analysis The Brite Beverage...Ch. 27 - Process activity analysis for a service company...Ch. 27 - Prob. 21ECh. 27 - Lean principles Bright Night, Inc., manufactures...Ch. 27 - Lead time Sound Tek Inc. manufactures electronic...Ch. 27 - Lean accounting Dashboard Inc. manufactures and...Ch. 27 - Pareto chart and cost of quality report for a...Ch. 27 - Prob. 1PBCh. 27 - Lead time Master Chef Appliance Company...Ch. 27 - Lean accounting Com-Tel Inc. manufactures and...Ch. 27 - Pareto chart and cost of quality report for a...Ch. 27 - Make a Decision Lean Performance for...Ch. 27 - Prob. 2MADCh. 27 - Prob. 3MADCh. 27 - Prob. 4MADCh. 27 - Ethics in Action In August, Lannister Company...Ch. 27 - Communication Ethan Fromme, the chief financial...Ch. 27 - Leese Inc. has the following quality financial...Ch. 27 - When measuring the cost of quality, the cost of...Ch. 27 - In measuring the cost of quality, which one of the...Ch. 27 - External failure costs include all of the...
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