السلام عليكم جبت لكم الحل
السؤال الأخير الجواب فيه صوره بس ما طلعت تلقونه بالكتاب موفقين Q1: Explain CVP analysis in detail with suitable example. Break-Even Analysis a fundamental financial criterion used to make special decision whether or not a service’s future revenues will be sufficient to cover its ongoing costs. To answer such a question, management must understand the relationship among revenues, costs, and volume. Break even analysis, also called cost- volume -profit (CVP) analysis, provides tools to study these relationships. The remainder of this section explores break-even analysis and how it can be used to help answer numerous questions facing health care organizations. The formula to determine total revenues when price and quantity are known is Total Revenues = Price x quantity. Suppose a home health director wants to know how much her agency must be reimbursed per visit for her commercial home health service line to break even. Assuming for the moment that the only costs for this service line are $200,000 for staffing (two RNs and one nursing assistant), then to break even, revenues must also equal $200,000. Revenues = Costs $200,000 = $200,000 Although knowing that $200,000 is necessary to cover costs, the director still does not know how much she must be reimbursed for each visit to reach her S200, 000 targets. The fewer the visits, the higher the reimbursement needs to be per visit. Conversely, the higher the number of visits, the lower that reimbursement needs to be per visit to earn the $200,000. Thus, to determine the necessary per visit reimbursement to break even, she must know the number of visits Q2: Evaluate various capital investment alternatives. • Payback Method-calculate the time needed to recoup each investment • Net Present Value Method-difference between the initial amount paid for an investment and future cash inflows the investment brings in adjusted for the cost of capital • Internal Rate of Return- Rate of return on an investment that makes the NPV equal to $0 after all cash flows have been discounted at the same rate • It is also the discount rate at which the discounted cash flows over the life of the project exactly equal the initial investment Q3: Describe the planning-and-control cycle and the five key dimensions of budgeting. 4 major components: • Strategic Planning :Identifying an organization’s mission, goal, and strategy to best position itself for the future Assess the organization’s external and internal environments Mission Statement • Planning :To identify Goals ,Objectives ,Tasks ,Activities and Resources needed • Implementation:Once defined and approved budgets are created Implementing activities are the process of creating these individual budgets, which roll up to service line budgets which feed into the overall organizational budget For revenue gathering cost centers materials used-historical trends, market projections, revised fee schedules, gross revenues expected • Controlling:These provide guidance and feedback to keep the organization within its approved budget Tools vary, Monthly Reports and Expenditures against budgets Dimension: Participation Budget model Budget detail Budget forecast Budget modification Q4: Calculate costs using activity-based costing method with suitable example. • Method of estimating the costs of a service or product by measuring the costs of the activities it takes to produce that service or product • Bottom up approach ,It finds the cost of each service at the lowest level, the point at which resources are used and aggregates them upward into products • If a company manufactures a batch of 50,000 units and produces 50 units per machine hour, here is how the cost assigned to the units with ABC and without ABC compares: (http://www.accountingcoach.com )
Assignment 5 solution
العرض العادي
