Answer

Acc305

Management Accounting 2

Answer 1:

"Implementation of cost accounting as the economic pillar of management accounting systems in public
hospitals - the case of Slovenia and Croatia," is the title of the paper I chose for this research and study.
In the year 2019, this paper was published in the journal Economic Research. The primary goal of this
research is to compare and contrast the healthcare systems of Slovenia and Croatia. This article focuses
on the current state of development and potential problems of the Slovenian and Croatian healthcare
systems' management (cost) accounting systems. The research focuses on analyzing capabilities and
tracking costs based on several factors. It also looks at the various criteria and identifies the major
roadblocks in implementing a complete costing technique in Slovenian and Croatian hospitals.

The link of the article is:

https://www.tandfonline.com/doi/full/10.1080/1331677X.2019.1675079

Answer 2:

Management accounting concerns are discussed in this article. The difficulties are related to the
management cost accounting system's current development stage and future challenges. According to
the research, the cost accounting systems in public hospitals at both hospitals do not offer basic cost per
patient information.

Slovenian and Croatian management accounting are still in their infancy. Slovenia is ahead of Croatia in
terms of monitoring and analysis. In Slovenian public hospitals, the accounting system is based on an
accrual accounting platform, with bookkeeping also done on a cash flow basis, but in Croatian public
hospitals, the accounting system is based on a modified accrual accounting platform. Budgetary
accounting is based on the cash flow principle in both systems. The Croatian model presupposes that
revenues are recorded as cash inflows and equivalents during the reporting period. Slovenian
measurements also provide a more precise picture of financial status at the end of an accounting period,
which aids decision-making. They're also more likely to produce reliable data at both the micro and
macro levels. The report demonstrates that public hospital cost accounting systems in both nations do
not offer basic cost per patient information.

According to the report, the key challenges in Slovenian and Croatian healthcare systems are cost
calculation, cost allocation, and cost calculation frequency. The research is primarily concerned with the
current state of development and future difficulties of management (cost) accounting systems. The
audit also reveals that the MAS in both countries does not offer managers with reliable information to
help them make decisions. Both countries' MASs provide insufficient information, which has an impact
on their performance and cost control.
Answer 3:

Based on the findings, it is clear that hospitals in Slovenia and Croatia need to implement the accounting
processes and technologies necessary to improve their performance. Both hospitals should use
technically sound MAS and fully use it, taking into account both internal and external resources. An
accurate accounting system based on the accrual principle is required to offer an organized overview of
the completed services and consumables used, as well as the entire costs of medical treatment. This will
aid in determining and comprehending the cost per patient. When it comes to the resources required to
develop MAS, the attention must be switched to static resources. In the hospital and general accounting
literature, bottom-up micro costing is the preferred method in terms of accuracy and managerial
relevance.

According to an analysis of the capability for monitoring expenses in accordance with the source of the
cost incurred in accordance with the cost barriers in Slovenian and Croatian hospitals, IT support is
perceived as the most significant barrier to the implementation of a full costing method in both
countries. The entire costing technique will be used in the Croatian and Slovenian public healthcare
systems, according to the findings. It appears that a greater emphasis should be placed on IT
development by informing decision-makers about the advantages of using the cost accounting approach
to ensure financial resources.