Assignment:Activity-based Management Systems
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Assignment:Activity-based Management Systems
Many of you ultimately will work in service environments, such as medical facilities. Many service organizations have adopted activity-based management systems, which incorporate activity-based costing concepts throughout the organization. East Valley Hospital is a primary medical health-care facility and trauma center that serves 11 small, rural Midwestern communities within a 40-mile radius. The hospital offers all the medical/ surgical services of a typical small hospital. It has a staff of 18 full-time doctors and 20 part-time visiting specialists. East Valley has a payroll of 150 employees, consisting of nurses, technicians, therapists, dieticians, managers, directors, administrators, secretaries, data processors, and janitors.
Assignment:Activity-based Management Systems
Instructions
(a) Using your existing knowledge (however limited, moderate, or in-depth) of a hospital’s operations, identify as many activities as you can that would serve as the basis for implementing an activity-based costing system.
(b) For each of the activities listed in (a), identify a cost driver that would serve as a valid measure of the resources consumed in the activity.
You must proofread your paper. But do not strictly rely on your computer’s spell-checker and grammar-checker; failure to do so indicates a lack of effort on your part and you can expect your grade to suffer accordingly. Papers with numerous misspelled words and grammatical mistakes will be penalized. Read over your paper – in silence and then aloud – before handing it in and make corrections as necessary. Often it is advantageous to have a friend proofread your paper for obvious errors. Handwritten corrections are preferable to uncorrected mistakes.
Use a standard 10 to 12 point (10 to 12 characters per inch) typeface. Smaller or compressed type and papers with small margins or single-spacing are hard to read. It is better to let your essay run over the recommended number of pages than to try to compress it into fewer pages.
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The paper must be neatly formatted, double-spaced with a one-inch margin on the top, bottom, and sides of each page. When submitting hard copy, be sure to use white paper and print out using dark ink. If it is hard to read your essay, it will also be hard to follow your argument.
 
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