Assignment
CASE: DALLAS HEALTH NETWORK: Activity-Based Costing (ABC)
Financial Data Analysis Questions
Questions
1. Estimate the base case cost of Alternatives 1 and 2 regarding the provision of ultrasound services.
2. Which alternative has the lower total cost?
3. Redo the analysis assuming that the per unit supplies cost; billing and collection cost; general administration cost; and transportation, setup, and breakdown costs are higher than the base case values by 10 percent. Redo the analysis again assuming these costs are 20 percent higher than the base case values.
4. Return to the base case. What value for transportation and set-up costs would make the costs of the two alternatives the same?
5. Again, use all base case data but assume that a 5 percent discount is available if three machines are purchased. What effect does this have on the decision? What discount amount would make the two alternatives equal in costs?
6. Redo the base case analysis assuming a useful life of 3 years. Now assume a life of 7 years.
7. Do the analyses conducted for Questions 3 through 6 affect your decision as to which alternative has the lowest cost?
8. What subjective factors would influence the decision as to which alternative to choose?
9. What is your final decision?
10. In your opinion, what are three key learning points from this case?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- Case-Dallas-Health-Network.rar