Forum response – 400 words – Need in 15hours
I need a 400-word response to the following post my classmate made in our project. I am attaching the original questions that the instructor asked as an attachment
Supporting Service: Financial Services
Cost Driver: Per charge
Rationale: Financial services supports three centers but would most likely be impacted by volume of charges submitted. Volume of charges is more specific than using total patients as the cost driver because it accounts for all activities that the financial center would be responsible for tracking from each center.
Supporting Service: Facilities
Cost Driver: Direct Labor Hours
Rationale: Tickets could be submitted for each maintenance job performed that would include direct labor hours the technician spent on the job. This would allow the centers to track the hours for their contracted workers as well. Direct labor hours could be broken up further into labor type to account for specialized technicians whose services cost more…with direct labor hours still the cost driver.
Supporting Service: Housekeeping
Cost Driver: Per Patient
Rationale: Housekeeping services has a significant fixed cost for routine cleaning, however those costs are likely to increase in conjunction with patient volume due to additional room turnover and additional patient traffic in common areas. With each center having a normal expected minimum patient volume, these fixed costs could be shifted into a variable model where changes in costs are likely to occur with changes in patient volume.
Supporting Service: Administration
Cost Driver: Per Center
Rationale: Administration is more or less a fixed cost per center. Additional centers would require additional administration resources. There may be severe differences in the administration needs between centers, but without additional information, a per center cost driver is adequate.
Supporting Service: Personnel
Cost Driver: Open and Filled Positions
Rationale: Human resources efforts increase with the number of employees that work at each center, however that work also increases when new positions are posted. By counting both open and filled positions as the cost driver, the activity level would be an accurate representation of personnel department effort.