IB&N 0ET

Cost & Nanagement Acc.

Assignment

1o Mr A|| Shan
Irom Muhammad 8||a|
8]A IAL09019
Sect|on A





3-27 Activities and Cost Drivers in a Hospital
Activities Cost Drivers
1. Schedule patient Number oI patients scheduled
2. VeriIy insurance Number oI veriIications
3. Admit patient Number oI admissions
4. Prepare patient`s room Number oI preparations
5. Review doctor`s report Number oI reviews
6. Feed patient Number oI meals
7. Order tests Number oI orders
8. Move to/Irom laboratory Number oI moves
9. Administer lab tests Number oI tests
10.Order pharmaceuticals Number oI orders
11.Complete patient report Number oI reports
12.Check patient`s vital signs Number oI checks
13.Prepare patient Ior operation Number oI preparations
14.Move to/Irom operating room Number oI moves
15.Operate Number oI operating rooms
16.Collect charges Number oI charges to the patient
17.Discharge patient Number oI discharges
18.Bill insurance Number oI billings


3-28 Fixed, Variable and Mixed Costs

Department A Iixed
Department B variable
Department C mixed
Department D mixed
Department E variable




3-29 Relevant, Differential and Opportunity Costs
Option 1 Option 2
Cost 1 $ 8,000 8,000
Cost 2 6,420 2,500
Cost 3 16,000 0
Cost 4 20,400 40,800
Total Cost 50,820 51,300

3-30 Opportunity Cost and Relevant Costs
Emilio`s annual salary in Saltillo
Annual tuition and Iees
Annual book and supply expense
Monthly living expense in Saltillo
Monthly living expense in Mexico City
Monthly auto expenses (auto required in both cities)
Cost oI two business suits purchased just prior to resigning
Moving expenses
3-32 Cost Classification
1. Sample product mailed to prospective customers
&ncontrollable by sales manager
2. Phone charges Ior sales representative calling on customers
&ncontrollable by sales manager
3. Repair oI Iaulty products under warranty
&ncontrollable by general manager
4. Travel expenses on business trip
Controllable by general manager
5. Copying expenses
&ncontrollable by sales manager
6. Salaries paid to sales representatives
&ncontrollable by general manager
7. Computer time charged to the sales department
&ncontrollable by general manager
3-33 Cost of Goods Manufactured, Income Statement

Norton Industries
Income Statement
For the Month Ended May 31, 2007
($000 omitted)
ulrecL maLerlals
ulrecL MaLerlal lnvenLory (30/4/2000) $ 28
urchase of dlrecL maLerlals 310
lrelghL ln for maLerlals purchase 13
ulrecL MaLerlal lnvenLory (31/3/2000) (23)
ulrecL MaLerlal used $ 330
ulrecL Labor
ulrecL Labor 260
lacLory Cverheads
lndlrecL facLory labor $ 90
uLlllLles (133*80) 108
roperLy 1axlanL 60
lnsurance (20*60) 12
uepreclaLlonManufacLurlng lanL 20
uepreclaLlonManufacLurlng LqulpmenL 30 380
* 1oLal ManufacLurlng CosL $ 1110
Add Worklnprocess lnvenLory (30/4/2000) 130
Less Worklnprocess lnvenLory (31/3/2000) 220
** CosL of Coods ManufacLured $ 1040
Sales $ 1488
Sales dlscounLs (20)
neL Sales $ 1468
Less CosL of Coods Sold
CosL of Coods ManufacLured 1040
llnlshed Coods lnvenLory (30/4/2000) 247
llnlshed Coods lnvenLory (31/3/2000) (173) (1112)
*Cross Margln $ 336
Ceneral Selllng and AdmlnlsLraLlve Lxpense
Cfflce Salarles $ 122
Sales Salarles 42
lnsurance (20 x 40) 8
uLlllLles (133 x 20) 27
lnLeresL Lxpense 6
8enL 9
uepreclaLlonCfflce LqulpmenL 4 (218)
* lncome from operaLlons $ 138
CLher 8evenues 2
**neL lncome $ 140