paras integrated activity based costing
DESCRIPTION
Presentation on Integrated Activity Based Sharing in Hospital Management Information SystemTRANSCRIPT
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PARAS-Integrated ABC Module
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Slide 2 © 2010 Srishti
PARAS- Integrated ABC Module
• Activity Based Costing model that identifies activities in an
organization and assigns the cost of each activity resource
to all products and services according to the actual
consumption by each
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ABC Flowchart
ServicesServices
Services/ ActivitiesServices/ ActivitiesMaterial PackMaterial Pack Apportioned CostApportioned Cost
MP 1 MP 2
Service 1 Service 2 Service n
Electricity cost Human Resource Others
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Why Hospital needs Activity Based Costing?- To know your business in and out
- ABC methodology assigns an organization's resource
costs through activities to the products and services
provided to its customers.
- To know the human resource cost in a hospital
- Since hospital is having so many activities/ services, the
cost associated to each resource is huge and complex.
- The billing process is very complex thus calls for a robust
ABC in place
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Activity Based Costing- You have many services inside a hospital
- Each service can have many services and activities
- The services and activities can be broken down to three component
- Material Pack
- Service Cost
- Apportioned cost
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Material Pack- Every activity has material pack
- E.g. In lab sample collection: Vials, gauges, syringes etc. are material pack
- The consumption of the material pack will be updated in real time with the current stock
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Service cost- Every activity is associated with its service cost
- The service cost is the cost for the resource who is administering the sample collection activity
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Apportioned Cost- Apportioned cost is the overhead cost shared by a number
of activities/ services.
- The apportioned cost would be resource
remuneration,rent, electricity cost, air conditioned cost etc.
which is associated to manage the activity
- Utilization of resources- 70% of actual time/ effort/cost
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ABC usage- For a smooth functioning and to know the overheads,
hospitals need Activity Based Costing
- The better the ABC usage the better the sustainability of the hospital
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Question/ Feedback?
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THANK YOU..!!!