application of ABC principles

-The emphasis in this assignment is on the application of ABC principles to a real-life situation. Provide
practical solutions to the partners. -You don�t have to tell them what to do, but you do need to identify
alternative courses of action from which the partners can choose. -Please change the text highlighted in blue
from theory to actual evaluation/ analysis of the scenario. -in thes second document please insert the txt
highlighted in red but in your own words! -no need to do the calculation, introduction as i have done it for you.
-reference more journals change the theory to analysis. relate it to the scenarios.use these points but relate it
to scenario its a memo, mention cost per hour -how is the patient related cost for an individual determined –
recommendation- mention recommendation to move from activity based costing to abc. =recommend to change its price
to secure good profit margin by setting the prices in advance with the amount of resources consumed by each
patient recommendation 3 will the price rise have an effect on patients using the services. if it doesnt then
could be possible to increase the prices. -also consider resource cost reduction -85% occupancy rate
recommendation- Mention the figures are based on 66% occupancy to get to 85% is quite high.The daily rate would
be reduced. The company had used 66% if they increase it to 85% this will have areal effect on the the activities
of the members and clients. Also the absorption costs will end up going up. the proposed increase would be a good
idea however Why?? Increased occupancy has long term benefits and increased periods


 

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