Describe the four types of costs that might be relevant when considering alternative projects. Explain the role of direct and indirect costs in the costing process. Decribe the three methosd of cost allocation.
Describe the four types of costs that might be relevant when considering alternative projects.
Explain the role of direct and indirect costs in the costing process.
Decribe the three methosd of cost allocation.
Explain what is meant by cost behavior, and differentiate between the five general types of cost behavior.
Explain the difference between controllable and not controllable costs.
Describe the four types of costs that might be relevant when considering alternative projects.
Explain the role of direct and indirect costs in the costing process.
Decribe the three methosd of cost allocation.
Establish the importance of the semivariable cost function.
Calculate estimated fixed and variable costs using one of the described methods.
Calculate break-even and the volume necessary to achieve a desired net income.
Human resources (nurses, therapists, aids, etc) generally comprise the largest cost segment in a healthcare firm. What measures should directors and administrators monitor on their dashboard to help them make decisions about the cost of these resources? What steps can healthcare organizations take to maximize the efficient use of these resources?
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An ambulatory surgery center has fixed costs of $250,000 per month and variable cost of $3500 per surgery. If average reimbursement per surgery is $6500, how many surgeries must be performed each month for the surgery center to break even? If a profit of $80,000 per month is desired, how many surgeries must be done to reach that goal?
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