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Management Accounting in Health Care Organizations, 3rd Edition

Book Description

A user-oriented approach to management accounting concepts and techniques

This thoroughly revised new edition of Management Accounting in Health Care Organizations provides introductory-level instruction and a user-oriented approach to management accounting concepts and techniques that help prepare students for managerial work in health care. The new edition includes information regarding the role of management accounting in health care organizations, the impact of the Affordable Care Act on managerial responsibilities, recent changes in operational budgeting practices—including a focus on "budget drivers," the importance of managing the revenue cycle, and other factors that have fundamentally altered the use of management accounting in health care organizations over the past several years.

Throughout this edition, the author introduces concepts and techniques that will help students identify, analyze, and apply key management accounting principles. The use of practice case studies at the end of each chapter allows students to master the techniques rather than simply memorize them.

  • Assesses the impact of health care's impending fiscal crisis on the management accounting needs of health care organizations

  • Describes the essentials of full-cost accounting, differential-cost accounting, and activity-based accounting, while illustrating their use in health care organizations

  • Explains responsibility accounting and provides guidance on designing a responsibility accounting structure

  • Table of Contents

    1. Cover
    2. Title page
    3. Copyright page
    4. List of Figures, Tables, and Exhibits
      1. Figures
      2. Tables
      3. Exhibits
    5. Dedication
    6. Preface
      1. To the Student
      2. To the Instructor
      3. Organization of the Book
    7. Acknowledgments
    8. The Author
    9. CHAPTER 1: Management Accounting and Health Care's Impending Fiscal Crisis
      1. Organization of the Chapter
      2. Four Forces Affecting Health Care Costs
      3. Responding to the Four Forces
      4. The Health Care Food Chain
      5. Impact of the Affordable Care Act
      6. Cost Control Is Everyone's Business
      7. Management Accounting Systems
      8. Key Terms
      9. To Bear in Mind
      10. Test Yourself
      11. Suggested Cases
      12. Assignment
    10. CHAPTER 2: Essentials of Full-Cost Accounting
      1. Organization of the Chapter
      2. Uses of Full-Cost Information
      3. Issues to Consider in Calculating Full Costs
      4. The Full-Cost Accounting Methodology
      5. Summary of Cost Accounting Choices
      6. Key Terms
      7. To Bear in Mind
      8. Test Yourself
      9. Suggested Cases
      10. Assignment
      11. Appendix 2A: The Reciprocal Method of Cost Allocation
      12. Appendix 2B: Pricing in Nonprofit Organizations
    11. CHAPTER 3: Cost Behavior
      1. Organization of the Chapter
      2. The Nature of Costs
      3. Cost-Volume-Profit Analysis
      4. Special Considerations in CVP Analysis
      5. Key Terms
      6. To Bear in Mind
      7. Test Yourself
      8. Suggested Cases
      9. Assignment
      10. Assignment
    12. CHAPTER 4: Differential Cost Accounting
      1. Organization of the Chapter
      2. The Differential Cost Concept
      3. Sunk Costs
      4. The Strategic Perspective
      5. Nonquantitative Considerations
      6. Allocated Overhead
      7. Key Terms
      8. To Bear in Mind
      9. Test Yourself
      10. Suggested Cases
      11. Assignment
    13. CHAPTER 5: Activity-Based Costing
      1. Organization of the Chapter
      2. Health Care's Stage 2 Challenge
      3. A Functional Classification of Manufacturing Costs
      4. Computing a Product's Full Cost
      5. Absorption Costing in Health Care Organizations
      6. Key Terms
      7. To Bear in Mind
      8. Test Yourself
      9. Suggested Cases
      10. Assignment
      11. Assignment
    14. CHAPTER 6: Responsibility Accounting: An Overview
      1. Organization of the Chapter
      2. Cost Accounting and Responsibility Accounting
      3. Designing a Responsibility Accounting System
      4. The Responsibility Accounting Structure
      5. The Responsibility Accounting Framework
      6. Formal Management Control Activities
      7. Key Terms
      8. To Bear in Mind
      9. Test Yourself
      10. Suggested Cases
      11. Assignment
    15. CHAPTER 7: Designing the Responsibility Accounting Structure
      1. Organization of the Chapter
      2. Making Profit Centers Work
      3. Design Complications
      4. Responsibility Centers and Motivation
      5. Transfer Pricing Problems
      6. Issues to Consider in Setting Transfer Prices
      7. Relation to Informal Authority and Influence
      8. Key Terms
      9. To Bear in Mind
      10. Test Yourself
      11. Suggested Cases
      12. Assignment
    16. CHAPTER 8: Programming
      1. Organization of the Chapter
      2. Programming: An Overview
      3. Capital Budgeting Techniques
      4. Selecting a Discount Rate
      5. Nonquantitative Considerations
      6. Key Terms
      7. To Bear in Mind
      8. Test Yourself
      9. Suggested Cases
      10. Assignment
      11. Appendix 8A: The Concept of Present Value
      12. Appendix 8B: Special Programming Issues in Governmental Organizations
    17. CHAPTER 9: Operational Budgeting
      1. Organization of the Chapter
      2. General Nature of the Operating Budget
      3. Managerial Context for the Operating Budget
      4. Components of the Operating Budget
      5. Steps in Formulating the Operating Budget
      6. Related Organizational Aspects
      7. Toward More Effective Budgeting
      8. Key Terms
      9. To Bear in Mind
      10. Test Yourself
      11. Suggested Cases
      12. Assignment
      13. Appendix 9A: Budgeting Misfits
    18. CHAPTER 10: The Cash Budget
      1. Organization of the Chapter
      2. Link to the Dual-Aspect Concept
      3. Cash-Related Cycles
      4. Key Cash Management Concepts
      5. Making the Forecasts
      6. The Statement of Cash Flows
      7. Key Terms
      8. To Bear in Mind
      9. Test Yourself
      10. Suggested Cases
      11. Assignment
    19. CHAPTER 11: Measuring and Reporting
      1. Organization of the Chapter
      2. The Measuring Phase
      3. Aligning Responsibility with Control
      4. Measuring Techniques
      5. The Reporting Phase
      6. Measuring and Reporting Nonfinancial Information
      7. Key Terms
      8. To Bear in Mind
      9. Test Yourself
      10. Suggested Cases
      11. Assignment
      12. Assignment
    20. CHAPTER 12: Implementing a New Responsibility Accounting System
      1. Organization of the Chapter
      2. Criteria for a Good Responsibility Accounting System
      3. Key Characteristics of a Good Responsibility Accounting System
      4. The Responsibility Accounting Context
      5. Managing the Change Effort
      6. Key Terms
      7. To Bear in Mind
      8. Test Yourself
      9. Suggested Cases
      10. Assignment
    21. APPENDIX A: Answers to “Test Yourself” Questions
      1. Chapter 1
      2. Chapter 2
      3. Chapter 3
      4. Chapter 4
      5. Chapter 5
      6. Chapter 6
      7. Chapter 7
      8. Chapter 8
      9. Chapter 9
      10. Chapter 10
      11. Chapter 11
      12. Chapter 12
    22. APPENDIX B: Solutions to the Practice Cases
      1. Chapter 1 Practice Case: Central Valley Primary Care Associates
      2. Chapter 2 Practice Case: Mossy Bog Laboratories
      3. Chapter 3 Practice Case A: Huntington Hospital
      4. Chapter 3 Practice Case B: Jiao Tong Hospital
      5. Chapter 4 Practice Case: Narcolarm
      6. Chapter 5 Practice Case A: Lincoln Dietary Department
      7. Chapter 5 Practice Case B: Owen Hospital
      8. Chapter 6 Practice Case: Akron Public Health Department
      9. Chapter 7 Practice Case: Valley Hospital
      10. Chapter 8 Practice Case: Erie Hospital
      11. Chapter 9 Practice Case: Los Reyes Hospital
      12. Chapter 10 Practice Case: Gotham Meals on Wheels
      13. Chapter 11 Practice Case A: Oak Street Nursing Home
      14. Chapter 11 Practice Case B: El Conejo Family Planning Clinic
      15. Chapter 12 Practice Case: Hillside Hospital
    23. Glossary of Selected Terms and Concepts
    24. Index