HSA 525: Cost Behaviors and Aides Essay

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Assignment two: Cost Actions and Share

HSA 525: Health Economic Management

Nov 4, 2012

Cost Actions and Allowance

The relationship among fixed, variable, and total costs of an organization is named cost behavior. It is also referred to as underlying cost structure, and is also used for planning, control, and decision making within the organization. Healthcare organizations confront several problems to try and improve the quality of care and reduce costs at the same time. Their respond to how to do this identifies their price behavior. Fixed costs is a cost which can be certain no matter the volume of services that are delivered and will arise even if the center is shut down. Variable costs are related directly to how much service that may be delivered. The two of these costs from the underlying price structure of an organization. For example the costs of supplies used to draw blood in a laboratory, could be the variable costs, the costs to hold the lab open would be fixed costs. To understand the cost behaviors in the organization you must figure out the relationship these costs have with the amount of services that they can be delivering. To handle your costs you want to make sure that you are getting enough quantity that will cover your costs. Cost portion is a very important part of cost measurement. It is a prices process that within the corporation where managers allocate the expenses of all the departments. Within healthcare organizations the overhead costs, costs from affected person services departments, and support costs have to be allocated. For this reason pricing and service offerings are based on the entire costs with regards with each services. In the event the allocations of overhead costs are allocated correctly the organization is much better able to produce good decisions for the organization. Works Offered

Evans III, J. L. (1998). Cost Management and Management Control in Health-related Organizations: Analysis Opportunities....

Offered: Evans 3, J. L. (1998). Price Management and Management Control in Healthcare Organizations: Analysis Opportunities. Behavioral Research in Accounting, twelve, 78-103.

Gapenski, L. (2012). Healthcare fund: An introduction to accounting and financial management (5th impotence. ). Chi town: Health Government Press.



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