(Solved) Healthscope Activity-Based Costing Accounting Pdf 2022
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Added on 2021-06-17
(Solved) Healthscope Activity-Based Costing Accounting Pdf 2022
Added on 2021-06-17
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Activity based Costing 1ACTIVITY BASED COSTINGBy (Student’s Name)Professor’s NameCollegeCourseDate
Activity based Costing 2ACTIVITITY BASED COSTINGTable of ContentsExecutive summary.....................................................................................................................................3Introduction.................................................................................................................................................4Explanation of the Activity Based Costing and Its feature...........................................................................5Explanation of how Activity based costing model aligns with strategies and goals of the Healthscope Limited.........................................................................................................................................................7Objectives and Mission of Healthscope Limited......................................................................................7Corporate strategies of the Healthscope Limited....................................................................................7How Activity-based costing support the strategies Healthscope Limited................................................8Recommendations for the implementation of an Activity-based model for Healthscope...........................9Management accounting tool appropriate for Healthscope Limited..........................................................9Conclusion.................................................................................................................................................10References.................................................................................................................................................11
Activity based Costing 3Executive summaryThis paper examines how Healthscope Limited can apply the use of ABC system toimprove their service delivery. Though choosing a suitable accounting system has beenchallenged for the managers of the Healthscope Limited. There is the need for the organizationto develop a cost-effective model that will help solve the problem of costs. ABC model will alsoassist the management to efficiently use the scarce resources as well as savings with thecontinuous increase in the healthcare costs. Therefore, the core objective of this paper is toexplain how the Healthscope Limited can successfully implement the Activity-based costing.The paper also outlines appropriate recommendation necessary for the implementationprocess of the approach in the discussion. It is stated that creating a good relationship as wellas the provision of the relevant training process of the entire staff will facilitate theimplementation of the ABC system. The paper also suggests the alternative models that can beused instead and together with the ABC system with the intention of improving theperformance regarding service delivery to institution’s Customers.IntroductionHealthscope Limited has been facing challenges and difficulties in using the limited costsas well as resources for the provision of the hospital needs. The Medical research also facilitatesthe introduction of the modern medicines and techniques; this causes an increase in theconsumed costs at the Healthscope Limited. The rise in prices of healthcare in any institutionhas got negative impact both to the customers and Healthscope Limited. To the customers, itwill increase their expenditure on the medical services, and to the Healthscope Limited, it will
Activity based Costing 4lower their performance due to lower turnover of the customers. The Healthscope Limited hasto look for the favorite ways of financing the services which they offer to the customers sincethe general Healthscope Limited insurances are not enough to cover the expensive costs ofhealthcare services. The Healthscope Limited performs under pressure to be one of the valuesefficient. The institution has to put their attention on establishing an acceptable method ofaccounting as well as costing system that will help them in improving the efficiency of theiroperations (Gillespie and Privitera 2018). The management have the responsibility of coming upwith the suitable tool that will help them determine the available costs in the hospital; they alsohave to apply cost accounting to estimate the cost per unit of the services that they offer totheir client. Such kind of information will help the institution to develop realistic prices, budget;identify the inefficiencies as well as projecting the effect of any change in demand would causeto the available resources. To ensure effective management, Healthscope Limited shoulddevelop a system of cost management that uses the absorption technique. The use of thetraditional method of assigning costs by the Healthscope Limited has caused alterations in thefinancial report and indirect costs, thereby limiting the management of obtaining preciseinformation relating to the allocation of the expenses in the organization. Therefore, it isadvisable for the administration to develop Activity-based costing model to help solve theproblem of the traditional costs system. The paper contains different sections that will help inexplaining how Healthscope Limited can appropriately apply the use of the ABC system. Finally,there is the recommendation of the alternative model that the management can use instead ofthe Activity-based costing model.
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