| CASE 8 DALLAS HEALTH NETWORK: Activity-Based Costing (ABC) | 2/18/19 |
| Excel Spreadsheet Updates/Model Generation |
| This case illustrates the use of activity-based costing to estimate the costs associated |
| with two alternative approaches to providing ultrasound services at three clinic locations. The |
| worksheet uses both operating and capital (equipment) cost input data to estimate both |
| operating and total costs for the two alternatives. |
| The model consists of a complete base case analysis--no changes need to be made to the existing |
| MODEL-GENERATED DATA section. However, values in the INPUT DATA section of the student |
| spreadsheet have been replaced by zeros. Students must select appropriate input values and enter |
| them into the cells with values colored red. After this is done, any error cells will be corrected and |
| the base case solution will appear. The KEY OUTPUT section includes the most important output |
| from the MODEL-GENERATED DATA section. |
| INPUT DATA: | KEY OUTPUT: |
| Alternatives I and II Cost Detail: | Per Procedure Operating Cost: |
| Volume | Unit | Unit Cost | Alt. I | $0.00 |
| Appointment scheduling | 0 | minutes | $0.00 | Alt. II | $0.00 |
| Patient check-in | 0 | minutes | $0.00 |
| Ultrasound testing: | Total Costs Including Capital and |
| Technician time | 0 | minutes | $0.00 | Maintenance Costs: |
| Physician time | 0 | minutes | $0.00 |
| Supplies | 0 | procedure | $0.00 | Total Lifetime: |
| Patient check-out | 0 | minutes | $0.00 |
| Film processing | 0 | minutes | $0.00 | Alt. I | $0 |
| Film reading | 0 | procedure | $0.00 | Alt. II | $0 |
| Billing and collection | 0 | procedure | $0.00 |
| General administration | 0 | procedure | $0.00 | Total Annual: |
| Alternative II Only Cost Detail: | Alt. I | ERROR:#DIV/0! |
| Alt. II | ERROR:#DIV/0! |
| Transportation, set-up, | 0 | minutes | $0.00 |
| and breakdown | Total Per Procedure: |
| Other Data: | Alt. I | ERROR:#DIV/0! |
| Alt. II | ERROR:#DIV/0! |
| Expected annual volume | 0 |
| Capital cost per machine | $0 |
| Capital cost discount | 0.0% |
| Cost of van | $0 |
| Annual van maintenance | $0 |
| Annual machine maintenance: |
| One unit | $0 |
| Three units ($ per unit) | $0 |
| Expected machine/van life | 0 |
| MODEL-GENERATED DATA: |
| Alternative I Operating Cost per Procedure: |
| Schedule the appointment | $0.00 |
| Patient check-in | 0.00 |
| Ultrasound testing: |
| Technician time | 0.00 |
| Physician time | 0.00 |
| Supplies | 0.00 |
| Patient check-out | 0.00 |
| Film processing | 0.00 |
| Film reading | 0.00 |
| Billing and collection | 0.00 |
| General administration | 0.00 |
| $0.00 |
| Alternative II Operating Cost per Procedure: |
| Alternative I cost | $0.00 |
| Transportation, set-up, and breakdown | 0.00 |
| $0.00 |
| Total, Annual, and Per Procedure Costs Including Capital and Maintenance Costs: |
| Alternative I | Alternative II |
| Cost of van | $0 |
| Van maintenance cost | 0 |
| Cost of machines | $0 | 0 |
| Machine maint. cost | 0 | 0 |
| Operating costs | 0 | 0 |
| Total costs | $0 | $0 |
| Annual costs | ERROR:#DIV/0! | ERROR:#DIV/0! |
| Per procedure costs | ERROR:#DIV/0! | ERROR:#DIV/0! |
| END |
lolo1994
Case08DallasHealthNetwork-sStudentDist02-18-191.xlsx
