Corporate strategy of Ramsay Assignment

   

Added on  2021-05-31

12 Pages2743 Words106 Views
Activity based Costing 1ACTIVITY BASED COSTINGBy (Student’s Name)Professor NameCollegeCourse
Corporate strategy of Ramsay Assignment_1
Activity based Costing 2ACTIVITY BASED COSTINGTable of ContentsExecutive summary.........................................................................................................................3Introduction......................................................................................................................................4Meaning of Activity-Based Model and its features.........................................................................4How ABC supports the modern strategies and goals of Ramsay health care..................................6The mission and objectives of the organization...........................................................................6Corporate strategy of Ramsay health care...................................................................................6Explanation of how the model helps in achieving the strategies of the company.......................7Alternative management accounting tool suitable for Ramsay health care.....................................7Recommendation for the implementation of ABC for Ramsay health care....................................8Conclusion.......................................................................................................................................9References......................................................................................................................................10
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Activity based Costing 3Executive summaryThis report discusses the benefits of ABC system to an organization. It also enlightens thelimitation associated with the implementation of the Model to the organization. Some of themajor benefits of the ABC system include; it allows the Managers to have full control of theoverhead as well as understanding the profitability of customers and products, facilitatesbenchmarking, it enables supply chain, value streams and costing of processes. ABC system alsoacts as the tool for decision making. Some of the major limitation of the ABC system discussedin the paper includes: sometimes it is difficult to choose on the best cost drivers, it is hard toestimate cost based on the daily activities of the organization, report produce by Activity basedcosting do not obey GAAP and the data of the system can be misinterpreted easily by theManagers hence leading to bias decision making. ABC system cannot solve all the problems ofthe organization therefore; it is advisable for the managers to use other management tools such asTotal quality management to help in decision making process. Activity based costing is the bestapproach the healthcare should use in apportioning health costs.
Corporate strategy of Ramsay Assignment_3
Activity based Costing 4IntroductionThis report discusses the application of the ABC model in the Ramsay health care. RHCis an organization that operates and owns the facilities of the healthcare. Its facilities coverdifferent needs of the healthcare from minor surgery to complex surgeries procedures. The modelhelps the healthcare to solve the problems that they are facing. The issues that the healthcare isfacing include the rising costs of healthcare services and the increasing numbers of elderly whouse the services of the healthcare. ABC provides the important approach to managing cost in thehospital. Cost management can benefit the healthcare if the activities of the care are linked tocost (Mahal and Hossain 2015). The framework aligns inputs through the process to outcomesand outputs. It assigns costs based on the patients to care requirements rather than the structureof the management. Ramsay health care needs to improve the way it delivers its services andwork. Therefore, ABC model can improve the activities of the Ramsay healthcare. The paper isseparated into different sections. The first section explains the meaning of Activity-based modeland its characteristics. The next section is the explanation of how the approach supports goalsand strategies of the institution. The third part of the paper discusses the recommendation aboutthe actual implementation of the Activity-based model for the Ramsay healthcare. The last partexplained in detail the alternative models that can be used by the organization. Meaning of Activity-Based Model and its featuresABC is a method of accounting that recognizes the activities being performed by the firmand then allocates indirect costs to commodities. ABC system identifies the correlation betweenactivities, products, and cost, and through this; it then apportions indirect cost to commodities. Itis difficult to apportion some of the costs by use of ABC approach of cost accounting. An
Corporate strategy of Ramsay Assignment_4

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