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 amends at polar volume level. Q 4.3. The average live per whole 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 set approachs and average toll per unit of volume has classical implications in the effect of volume change on profitability. Q 4.4. The first digression between institutionalize and substantiative overhead cost is that direct cost can easily be traced to a cost objective, such as products or function mend indirect cost cannot be assigned to a special(a) cost objective. P 4.2. a) The underly ing cost structure is: add together cost = core fixed costs + Total unsettled costs. b) The clinic anticipate conglomeration 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: $332 500/12500= $ 26.60 P 4.4. a) The cos! t pools is all direct costs of one part therefore cost pools = $100000.00 b) The allocation rate if a) Patient services is used as a cost driver allocation 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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