Hospital Fiscal Year Price Increase Event
Introduction
In business environments, there are managerial and financial accounting personnel to maintain accounting records. Financial accounting is geared towards serving external users such as creditors, investors, and those outside of the organization. They assist external users in making investment and credit type decisions as it relates to organization-wide, monetary information. However, they are controlled by Generally Accepted Accounting Principles (GAAP) and cannot provide that type of information until an audit is complete.
On the other hand, managerial accounting is aimed towards serving internal users such as managers, employees, and those inside the organization. Unlike financial accounting, they are not controlled by GAAP and do not have to wait on an audit to be completed; their information is readily available so long as it is utilized for planning decisions in relation to organization projects and workflow processes. The nature of their information can be monetary or
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For instance, if the hospital is the only facility that provides labor and delivery services, they will have more flexibility to increase those items without being too far from the market as far as supply and demand is concerned. However, if the hospital and three surrounding hospitals provide radiology services, they will have to be mindful on how those prices are calculated and determined. Garnick accentuates that “A market perspective is appropriate for analyzing hospital markets as a whole, however, and for answering such questions as ‘are there higher costs or more specialized services, on average, when hospitals are located in more dense hospital market areas?’” In addition, there are qualitative factors that management has to consider such as environmental effects, social responsibility, and political awareness, which are identified as non-financial
Supposedly, the national average occupancy rate of hospitals is lower than it should be because of rising costs of hospital care. Factors causing variations in occupancy rates are hospital size, product diversification, and urgent versus non-urgent
Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
The functions of managerial accounting include planning, decision-making, controlling, and evaluation. To make good decisions, managers must constantly adapt to technological changes, changes in the organization's needs, and new approaches to other functional areas of business-- marketing, production, finance, organizational behavior, and corporate strategy. Planning is the setting of goals and developing strategies and tactics to achieve them. Controlling is concerned with achieving the goals and evaluating performance. The success of an organization lies heavily on the shoulders of those making these decisions.
It would be necessary for a hospital administrator to look closely at ways to lower healthcare costs and provide more efficient care when a large employer like BRPP states they are thinking of relocating their employee inpatient hospital services to a company like InduShealth. InduShealth is offering substantially lower prices for several surgical procedures and a U.S. hospital administrator would not want to lose this large consumer population if it was possible to find more efficient methods of providing healthcare to their patients (McLaughlin & McLaughlin, 2008). One pricing strategy that a hospital administrator could advocate for is a bundled...
One primary key to a successful health care organization is having a strategy to achieve the mission of the organization. This is particularly true in reference to creating a budget and generating revenue for a profitable bottom line of a hospital. Executives are experiencing a gap that is continuously widening between technology and hospital demands, which is causing additional conversation around pricing. According to Nugent (2004), there are three major themes to consider when it comes to strategic pricing. These themes include pricing at the margin (pricing new business to cover variable costs and margin, if capacity exists), cross-subsidizing (funding one service with profits from another service) and testing what the market will bear
Despite of the fact that hospitals are normally categorized as non-profit organizations in accounting terminology, it is still important to have a check and balance system through which the difference in expenses and revenues can be effectively monitored. It is a general assessment that the hospital will move for less expensive and cheaper cost drivers and motivators in order to bring down the level of surging expens...
This may surprise you but, there are many jobs dealing with algebra, three different types of jobs that use algebra are accounting, home health care providers, and credit manager. These different jobs all require knowledge of algebra to be able to solve the problems, and to do daily work that happens within the job. Accountants use algebra to make decisions and such, while health care providers use it on a daily basis to take care of their patient. And credit managers use it to help people with their financial deals and such as. Algebra is also used on a most daily basis with the most simplest things that are done daily. Tasks such as: getting gas, buying and paying for items at the store, sharing candy among siblings, and exercising.
Financial and Managerial accounting are used for making sound financial decisions about an organization. They provide information of past quantitative financial activities and are useful in making future economic decisions. (Albrecht, Stice, Stice, & Skousen, 2002) The same financial data is used to derive reports for each accounting process yet they differ in some ways. Financial accounting primarily provides external reports for external users such as stock holders, creditors, regulating authority and others. (Garrison, Noreen, & Brewer, 2010) On the other hand Managerial accounting is concern with providing information that deals with the internal viability of the organization and is tailored to meet the needs of an individual organization. (Albrecht, Stice, Stice, & Skousen, 2002)
Financial accounting is the analysis, classification, and recording of financial transactions and reporting such information to respective users especially external users who use the information to make decisions about their engagements with the entity. In financial accounting general purpose financial statements are used for external reporting. The public by standards imposes the development of the statements through respective national professional bodies, International Accounting Standards Board and respective company Acts for various nations.
Accounting is basically a service activity. Its purpose is to provide quantitative information that principally used by the managers, investors, tax authorities, and other decision makers to make the financial decisions within companies, organizations, and public agencies. Accounting is also widely known as the “language of business.” An accountant measures, communicates, and interprets financial activities. They prepare financial statements or reports for individuals, businesses, government agencies, or other non-profit organizations. They use the accounting systems to categorize the expenses and income to the typical groups. They also keep tract of the money received or paid out to see if the transactions are accurate and complete. Accountants are familiar with the computer operation. They use the computer...
Managerial accountants need to use accounting information in seeing to it that they are able to plan, evaluate the company performance, manage risks and control the business operations in a manner that is deemed beneficial to the business as a whole (Caplan, n. d). This can be achieved through: having high standards of ethics in all situations; employing the techniques of management reports, budgetary control, and analysis of fund flows and financial statements; making prudent capital investment decisions; and maintaining continuous quality control systems.
In Management, the accountant gives advices to the individuals and business people, how to manage their business. The account information is considered and some business decisions are taken in both financial and non-financial departments. Budgeting, tax filing, and financial statements. Other activities like involve in planning com...
When I think of a financial manager, accountant quickly comes to mind. The role of accountant and financial manager are similar in several ways and often times they work closely together on various projects. The role of an Accountant is to ensure that their organization is run efficiently, make sure their records are accurate, and that their taxes are paid properly and on time. Accountants perform a broad range of accounting, auditing, tax, and consulting activities for their clients. They record and analyze the financial information of the companies for which they work. Other responsibilities include budgeting, performance evaluation, cost management, and asset management. “The role of the financial manager has expanded beyond traditional responsibilities related to company's finances. A financial manager, through his/her understanding of the company's financial health, the current market, and the goals of the company, helps set direction and guides decision making.” Financial managers perform several different task related to finance for their organization they normally oversee the preparation of financial reports, direct investment activities, and implement cash management strategies.
Managerial Accounting plays very important role in a nonprofit organization. Accounting analysis techniques will help managers within organization to make better management decisions. With the help of these techniques managers making decisions about selecting equipment, determining whether costs are being efficiently incurred, monitoring financial and nonfinancial performance measures, and developing strategic plans.
The revenue/cost period-: Revenue and the cost period in accounting that the company get income from normal business activities. It’s referred to normal business income that the company got by selling their product and service.