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 employ by managers in planning, control, and decision-making. It provides them a tool to forecast indemnity 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 mend courts and average personify per unit of volume has primal implications in the effect of volume change on profitability. Q 4.4. The accompaniment digression between institutionalize and substantiative overhead cost is that direct cost can easily be traced to a cost objective, such as products or serve sequence indirect cost cannot be assigned to a particular cost ob jective. P 4.2. a) The underlying cost structure is: kernel cost = make sense fixed costs + Total inconsistent costs. b) The clinic anticipate summarise 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= $ 26.60 P 4.4. a) The cost pools is all direct costs of one division therefore cost pools = $100000.00 b) The allocation rate if a) Patient services is used as a cost driver apportioning 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

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