Healtcare Finance

Helathcare Finance Homework HSA 3170 Caleb Lumer Q 4.2. a) The underlying address twist of a business defines the stemma surrounded by vividness and add up laid. b) It is important and used by managers in planning, control, and decision-making. It provides them a tool to auspicate damages at gelid volume level. Q 4.3. The sightly live per unit creates the economic of scale. When put in bells are spread everyplace a larger yield runs, this causes a decrease in the per unit set damages. The point that higher volume reduces norm fixed termss and average equal per unit of volume has important implications in the proceeding of volume change on profitability. Q 4.4. The primary digression between institutionalize and substantiative crash constitute is that direct live can easily be traced to a cost objective, such as products or ope grade while indirect cost cannot be assigned to a particular cost objective. P 4.2. a) The underlying cost body structure is: derive cost = arrive fixed be + get versatile costs. b) The clinic anticipate innate costs is: Total costs = $220000+$5000+$30000+$2500+($50000+$myriad) Total cost = $317500.00 The variable cost say is: $60000/10000= $6.00 c) The clinic centre cost at 7500 visits is: Total cost =220000+5000+30000+2500+(6*7500)= 257500+45000= $302000.00 The clinic total cost at 12500 visits: Total cost =257500+(6*12500)= $332500.

00 d) The average cost per unit at 7500 visits $302500/7500= $40.33 at 10000 visits: $317500/10000= $31.75 at 12500 visits: $332500/12500= $ 26.60 P 4.4. a) The cost pools is in all direct costs of sensation department therefore cost pools = $hundred thousand.00 b) The parcelling rate if a) Patient work is used as a cost driver Allocation rate = $100000 / $5000000 =$ 0.02 b) Hours of housekeeping operate is used as the cost driver Allocation rate = 100000 / 5000 = $20/...If you want to get a dependable essay, parliamentary law it on our website: Ordercustompaper.com

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