Health Care Finance: Basic Tools For Nonfiancial Mangers, Fifth Edition Judith J. Baker, R. W. and Neil R. Dworkin Assignment Exercise 7-1 Practice Exercise 7-1:

Health Care Finance: Basic Tools For Nonfiancial Mangers, Fifth Edition Judith J. Baker, R. W. and Neil R. Dworkin Assignment Exercise 7-1 Practice Exercise 7-1: Identify Direct and Indirect Costs Make a worksheet with two columns: Direct Cost and Indirect Cost. Place each of the following items in the appropriate column: Managed Care marketing expense Real estate taxes Liablility insurance Clinic telephone expense Utilities (for the entire facility) Emergency room medical supplies Assignment 7-1: Allocating Indirect Costs Study Table 7-1 Table 7-2, and review the chapter text describing how the indirect cost is allocated. This assignment will change the allocated bases input (A) Number of Visits (Volume), (B) Proportion of Directs Costs, and (C) Number of Computers in Service. Required The new allocation bases are: Allocation Key: A= # Visits (Volume): PT=9,600/OT=4,000/ST=2,400/Total=16,000(16,000 x $3.50=$56,000) B= Proportion of Direct Costs: PT=60%/OT=25%/ST=15%/Total =100%(%x$55,000) C= #Computers in Service: PT=10/OT=3/ST=3/Total = 16 (16x$5,000 each = $80,000)

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer