Rvu methodology, Cost Accounting

Assume that a primary care physician practice performs only physical examinations.  However, there are three levels of examinations I, II, III - that vary in depth and complexity.  An RVU analysis indicates that a Level I examination requires 10 RVUs , a Level II exam 20 RVUs, and a Level  III exam 30 RVUs.  The total costs to run the practice, including a diagnostic laboratory, amount to $500,000 annually, and the numbers of examinations administered annually are 2,400 Level I, 800 Level II, and 400 Level III.

a.       Using the RVU methodology, what is the estimated cost per type of examination?

b.      If the goal of the practice is to earn a 20% profit margin on each examination, how should the examinations be priced? 

 

 

Posted Date: 2/27/2013 7:12:24 AM | Location : United States







Related Discussions:- Rvu methodology, Assignment Help, Ask Question on Rvu methodology, Get Answer, Expert's Help, Rvu methodology Discussions

Write discussion on Rvu methodology
Your posts are moderated
Related Questions
Two classes of stock authorized: $100 par preferred and $2 par common how do you record this transaction? May 18 Issues 30,000 additional shares of $2 common stock for $75 p

The balance sheet and income statement for Bingle Ltd is presented to you as follows: Balance Sheet Extract as at 30 June 2012 with comparatives

DIFERENCE BETWEEN MARGINAL AND DIFFERENTIAL COSTING

A foreign company plans to clear several dozen acres of ecologically valuable mangrove swamp in Vietnam for the creation of a shrimp aquaculture facility.  This decision will creat

HOW APPLICABLE IS THE MARGINAL COSTING CONCEPT IN ACCOUNTING

need help to achieve my assignment

entries to be entered into a ledger account for the month of July 2009 & prepare an incoem statement. balances at 1/7/2009 Materials control $6150 Labour control (accrued wages)

Below find production and sales information for Herrestad Company. We will use this same company for all the SLPs in this course.  Product information

how do you calculate estimating cost for the last of the year based on activity during the first half of the year

A company manufactures a single product. Estimated cost data regarding this product and other information for the product and the company are as follows: Sales price per unit Rs.2