600 word assignment - need in 5 hours

jmawkiavik2

I need an 600 answer to the attached question within 5 hours:


  

Case

Part B

Now that you have calculated the costs associated with each profit center and each profit center’s net income, you began to question the cost driver for Financial Services. As you reflected more deeply on the activities in that support department, you realized that most activities revolved around the issuance of invoices to patients. You asked for data on invoices generated by profit center and received the schedule reflected in Exhibit 6 below.

  

Exhibit 6

 

Utilization of Financial Services


 

Patient Services Department


Number of Bills Required

 

Routine Care


3,200

 

Laboratory


60,300

 

Radiology


36,500

 


 

Total bills


100,000

 


Re-calculate costs and net profit for each profit center based on this assumption. Did the most profitable profit center change? Does one of the profit centers now operate at a loss? If you were the Manager of the Imaging profit center and were incentivized based on profit, which of the two costing approaches would you prefer? Which do you prefer as Manager of the Primary Patient Care? Which of the approaches is the best approach and why?

  • 9 years ago
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