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Costing Techniques in Health Care Organizations

February 2, 2014 0 Comment

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Product costing techniques have gained widespread use in the health care industry. Some various types of costing techniques include activity based costing, price-led costing, marginal costing, life-cycle costing and target costing. In your discussion outline the cost drivers and how each respective technique can be applied to reduce costs within a health care organization. You may use examples of each costing technique in your discussion. SLP assignment expectations: Use the information in the modular background readings as well as resources you find conducting research on the world wide web. Please be sure to cite all sources and provide a reference list at the end of the paper. Length: 2-3 pages typed and single spaced.
Sample Paper
Improving financial management is a factor that is currently challenging several health care organizations. Therefore, most are trying to implement different forms of product costing techniques to reduce costs within the organization. According to CIMA Discussion Paper (2005), target costing is the most common type of costing technique. A target cost is described as a product cost estimate achieved by subtracting desired profit margin from a competitive market price. Target costing increased due to the fact that it considers the entire life circle of production. Moreover, it reduces the overall costs of production, R&D, engineering, accounting and marketing. Studies have revealed that target costing is mostly used as a management process and not cost control since it focuses on all aspects of the customer from the initial design process………….ORDER NOW…http://unimasteressays.com/order/
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