While the principles of reliable, activity-based costing
are universally applicable, costing
system implementation must satisfy the unique characteristics and managerial needs of the foundry industry.
And it is worth trying because the "profit-and-loss" approach, as I call it, to evaluating patient care is superior to using RUG groups for costing
CVA calculates part volume and area to aid costing
Although the hospital was successful in costing
the services provided to individual patients and groups of patients, it was difficult to use this information for utilization management without comparative data from other hospitals, or without clinical profiles of ideal resource utilization and costs.
BusinessObjects Activity Based Costing
for Healthcare delivers a sustainable framework for collecting and reporting timely, accurate, and reliable costing
To ferret out these hidden environmental costs, consider using activity-based costing
, which traces overhead and period expenses to products, customer groups and, in some instances, to individual customers.
, by contrast, allocates overhead costs using direct labor content as the primary yardstick--though it also takes other departmental expenses into account.
This introduces a new aspect of overhead costing
, which has not been customary other than in special libraries.
Many companies, realizing their diverse products are probably cross-subsidizing each other by sharing costs that are unique to an individual product, are investigating or attempting to upgrade their costing
According to HealthLeaders-InterStudy, radiology costs account for 10 cents of every health care dollar and are growing by 18-20% a year, costing
health plans and their members billions of dollars that could be avoided.
Obviously, improper costing
and pricing can cost you a fortune.
Five years ago, a number of manufacturing companies formed a consortium, Computer Aided Manufacturing-International CAM-1), to develop a new approach to product costing