Services for revenue as cost driver for financial service

Assignment Help Financial Management
Reference no: EM13987815

Assume that the hospital uses salary dollars as the cost driver for General Administration, housekeeping labor hours as the cost driver for Facilities, and patient in services for revenue as the cost driver for Financial Services.

a. Allocate the hospital’s overhead cost to the patient services department.

b. Which of the two cost driver schemes is better? Explain your answer.

Reference no: EM13987815

Questions Cloud

Saving money to buy a car : You are saving money to buy a car. If you save $300 per month starting one month from now at an interest rate of 12%, how much will you be able to spend on the car after saving for 5 years?
Three patient service departments are adult services : Assume that three patient service departments are Adult Services, Pediatric Services, and Other Services. What is the dollar allocation to each patient services department if patient services revenue is used as the cost driver? What is the dollar all..
Considering launching a new line of plug-in electric suvs : Ford Motor Company is considering launching a new line of Plug-in Electric SUVs. The heavy advertising expenses associated with the new SUV launch would generate operating losses of $35 million next year. Without the new SUV, Ford expects to earn pre..
This investment are at least roughly normally distributed : An investment has an expected return of 12% per year with standard deviation of 6%. Assuming that the returns on this investment are at least roughly normally distributed, how frequently do you expect to lose money?
Services for revenue as cost driver for financial service : Assume that the hospital uses salary dollars as the cost driver for General Administration, housekeeping labor hours as the cost driver for Facilities, and patient in services for revenue as the cost driver for Financial Services. Allocate the hospit..
What is the portfolios expected return : A portfolio is invested 14 percent in Stock G, 54 percent in Stock J, and 32 percent in Stock K. The expected returns on these stocks are 9 percent, 15 percent, and 18 percent, respectively. What is the portfolio's expected return?
Latest fiscal reports in the investor relations : You can find this information in the following sources: "Wall Street Journal," "New York Times," Yahoo Finance, Bloomberg, and company web sites. The company web site will often provide you with the latest fiscal reports in the "investor relations" s..
Forecast that for the next five years dividends will grow : The Amazing Video Co. has just paid an annual dividend of 40 cents. You forecast that for the next five years dividends will grow at the rate of 25% a year over the period. Draw the time line showing the dividends per share of this stock for years 1 ..
Calculate the total amount of interest accumulated : Bob invests $1000 for a certificate of deposit that pays 5 percent interest and is compounded annually. The certificate matures after 12 years. Calculate the total amount of interest accumulated after 12 years. How much interest will you earn if the ..

Reviews

Write a Review

Financial Management Questions & Answers

  Financial institution is planning to give a loan

The assignment may be submitted as an Excel spreadsheet or an electronic (Word or PDF) document. A financial institution is planning to give a loan of $5 million to a firm. It expects to charge an up-front fee of 0.20% and a service fee of 5 basis po..

  An instrument may be negotiated even though

An instrument may be negotiated even though:

  What would be the market value of the condominium

A condominium is purchased for $80,000 with a down payment of $12,000 at an annual interest rate of 9% for 15 years. Calculate the unpaid balance after 10 years of making payments. What would be the market value of the condominium in Exercise 21 afte..

  Operating costs using the high-low method of cost analysis

HYTECK Company’s weekly store operating costs for a 10-week period had a value of $300,000 and a low value of $260,000. Sales volumes for the two weeks were $4,000,000 and $3,200,000 respectively. At a sales level of $3,500,000, the estimated store o..

  Amount of annual net cash flow generated by the business

Tawanna is considering starting a small business. She plans to purchase equipment costing $149,000. Rent on the building used by the business will be $26,000 per year while other operating costs will total $32,400 per year. what will be the amount of..

  Defined-benefit plan or defined-contribution pension plan

As an employee, would you prefer to participate in a defined-benefit plan or a defined-contribution pension plan? Explain your answer, being explicit in considering the advantages and disadvantages of each plan, and which are most important to you.

  Amount of the certificate as function of index performance

A bank offers a $100 certificate which redeems a variable amount after 5 years calculated as follows: $108and: $+1.08 for every percent that XYZ index went up, or: -$1.08 for every percent that XYZ index went down. draw the redemption amount of the c..

  Future value for various compounding periods

You borrow $240,000; the annual loan payments are $36,552.05 for 30 years. What interest rate are you being charged? Round your answer to two decimal places. Find the amount to which $300 will grow under each of these conditions:

  What net profit margin would LeCompte need in order

XYZ Corporation has $312,900 in total assets, and its uses only common equity capital (i.e., zero debt). Its sales last year were $620,000, and its net income after tax was $24,655. Stockholders recently voted in a new management team that has promis..

  System requires an initial investment in net working capital

Kolby’s Korndogs is looking at a new sausage system with an installed cost of $538,000. This cost will be depreciated straight-line to zero over the project’s four-year life, at the end of which the sausage system can be scrapped for $114,000. If the..

  What is the firms net operating working capital

The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $3 million and net plant and equipment equals $2.7 million. It has notes payable of $150,000, long-term debt of $750,000, a..

  Expected future events along with their respective cash flow

A decision maker must decide whether or not automate a given process. Depending on the technological success of the automation project, the result will turn out to be either poor, fair, or excellent. Draw the decision tree diagram for this problem. S..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd