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The purpose of this case is to calculate cost allocations, that is: allocation cost to...

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Accounting

The purpose of this case is to calculate cost allocations, that is: allocation cost to various people, departments, products et cetera. The case takes place in a health care environment. Questions:

1. Perform a SWOT analysis (strengths, weaknesses, opportunities, and threats). What implications can you draw from the pricing strategy opportunities? In other words, is there something in the pricing strategy that may be wrong? If so, outline what it is?

2. Calculate the cost per minute of each of the types of employees.

3. Allocate cost to each level of service using the appropriate cost drivers.

4. Calculate the cost of each patient and price per patient for each level of care.

5. If you were Young, what pricing recommendation would you make to the CEO? Please validate that activity-based costing actually solves the problem(s). Does using ABC suggest a specific product mix?

Deliverables: 1. Calculations (manually or in an Excel sheet). Please include enough detail so I can see how you did the calculations.

2. For question 1 and 5, use about one page of text for each, but not more than one page.

file:///Users/a.a.a/Downloads/Asante%20Hospital%209B16B012.pdf

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