Characteristics of the hd and pd treatments

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Reference no: EM133864491

Questions:

1) Was David Thomas justified in suspecting that the existing costing system was not accurate? What characteristics of the HD and PD treatments justify the use of a more detailed costing system? Why do you think Western Dialysis had not developed a more detailed costing system previously?

2) Prepare a new version of Table 1 (cost and pro?tability estimates} using the new ABC Costing System. What does the new table suggest about the pro?tability of the HD and PD treatments?

3) How could the new ABC costing system improve decision-making at Western Dialysis? What new decisions might Western Dialysis make as a result of their new costing system?

4) Think about the nursing services required for the HD and PD treatments. How could Thomas make the new ABC costing system even more accurate?

Reference no: EM133864491

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