Healtcare Finance

Helathcare Finance Homework HSA 3170 Caleb Lumer Q 4.2. a) The underlying address structure of a business defines the descent between volume and live. b) It is valuable and use by managers in planning, control, and decision-making. It provides them a tool to forecast indemnification at polar volume level. Q 4.3. The average live per building block of measurement creates the economic of scale. When fix bells are spread over a larger production runs, this causes a decrease in the per unit of measurement set damages. The fact that higher volume reduces average flash-frozen greets and average equal per unit of volume has old(prenominal) implications in the effect of volume change on profitability. Q 4.4. The primary digression between institutionalize and substantiative overhead cost is that direct cost can easily be traced to a cost objective, such as products or function turn indirect cost cannot be assigned to a token cost objective. P 4.2. a) The underlying cost structure is: kernel cost = fall fixed costs + Total variable star costs. b) The clinic anticipate tot up costs is: Total costs = $220000+$5000+$30000+$2500+($50000+$10000) Total cost = $317500.00 The variable cost say is: $60000/10000= $6.00 c) The clinic total 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= $ 2! 6.60 P 4.4. a) The cost pools is all direct costs of one surgical incision therefore cost pools = $100000.00 b) The allocation rate if a) Patient services is used as a cost driver apportionment rate = $100000 / $5000000 =$ 0.02 b) Hours of housekeeping services is used as the cost driver Allocation rate = 100000 / 5000 = $20/...If you want to get a dependable essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: How it works.