Cost Allocation Essay

Apple Valley Family Practice is a medical practice with four locations in the Minneapolis/St. Paul area. The clinical staff consists of 20 physicians, all of whom practice in one or more areas of family medicine, and 46 physician extenders and nurses.

The week four individual paper addresses the implementation of Activity Based Costing (ABC) by Super Bakery, Inc., a virtual corporation founded by Franco Harris. Specifically, management strategies, the reasoning behind an ABC system, and the alternatives of a job order cost system or a process order cost system are assessed for this enterprise.

This research paper is a brief discussion of budget management analysis. Budgeting is the key to financial management, and is the key to translates an organization goals or plan into money. Budgeting is a rough estimate of how much a company will need to get their work done, and provides the basis for evaluating performance, a source of motivation, coordinating business activities, a tool for management communication and instructions to employees. Without a budget an organization would be like a driver, driving blinded without instructions or any sense of direction, that’s how important a budget is to every organization and individual likewise (Clark, 2005).

In conclusion, many factors that influence the approvals and denials of projects and a financial plan will present a clear picture of the budget needed to cover the expenses. The expenses are for the construction

With help of input provided from experts such as PBM and ADPACs and other survey results, the organization can make a sound final decision on which product will be selected and how the implementation will proceed. Although the VA budget is predetermined by the Congress, details such as amount of full time equivalent (FTEs) allowed for this project and proposed implementation processes will need to be ultimately authorized by the senior

Step 7. Once the tasks and schedule were set up, we created a budget. These estimates were discussed with the Department of State who was funding the project.

AGREEMENT made by and between the Board of Regents, State of Iowa, acting for Iowa State University, hereinafter called the Owner, and { CM Name and Address } hereinafter called the Construction Manager. A strikethrough of paragraph(s) represents deleted or modified language. See Article 16 for deletions, modifications and additions to the Agreement. The Owner intends to undertake on the Campus of Iowa State University a Project entitled: Project Title: { Official Project Title } The Project Design Professional is: { Name of Design Professional } The Owner and Construction Manager agree as set forth below: I.

budget. As the project evolves, additional information is discovered and further estimates are produced. This is an extremely important process and we cannot emphasize enough the need for this re‐estimation or re‐budgeting process at each phase of the project. In any case, for the purpose of this article, we will call the revised budget the "actual budget." Another standard activity is to provide management with an expected cash flow. From a financial perspective this is an important activity, but it also can be used as your cost expectation.

The stakeholders have also have also decided on a $200,000 budget. This is a realistic goal; however there are some risks involved in the process. One risk that may be incurred is that one or more personnel may leave the project for one reason or another. There shall be a “pool” of qualified contract project professionals, on stand-by, just in case this happens. Another risk that may possibly happen is the lack of resources. There will be a process put in place to contact appropriate personnel should resources, such as, equipment, monies, personnel, etc. run short.

In addition to that other products required along with the departmental capital improvement proposals includes cost estimation, project justification statements, citation

Allocating overhead costs is one of the important tasks and is necessary to be done by management accountant. One key reason is that in term of pricing strategies, many firms decide their products’ selling price based on their cost. And the selling price has to cover all the costs and profit.

A comparison of the direct and indirect cost that is associated with the navigation system within VectorCal and my company.

However, cost sharing, defined as a cost that individuals must pay prior to receiving specific medical services or treatments covered by their health insurance plan. Still, most insurance policies require a contribution from the covered individual in the form of a co-payment, deductible, or coinsurance used in both fee-for-service and prepaid plans. Therefore, co-payments are costs that patients must pay at the time they receive the services, which is a designated dollar amount. Nevertheless, coinsurance is a type of co-payment that is part of a fee-for-service policy in which the patient pays a percentage of the cost of the services. Whereas, a distinctive coinsurance portion is 20% paid by the individual, with the remaining 80% paid

Details of the methods of apportionment used or a table showing the detailed allocations such as that shown below: Example of Support Cost Breakdown by Activity {text:bookmark-start} A reliable approach to cost allocation should be adopted but a NPO should also consider the materiality of the amounts involved and the cost benefit advantages of the approach in that greater accuracy may on occasions only be achievable at a high incremental cost. In attributing costs between activity categories, the following principles should be applied: {text:bookmark-end} Where appropriate, expenditure should be allocated directly to activity cost category. Items of expenditure which contribute directly to the output of more than one activity cost category, for example, the cost of a staff member whose time is divided between a fundraising activities and working on a charitable project, should be apportioned on a reasonable, justifiable and consistent basis. Depreciation, amortization, impairment or losses on disposal of property, plant and equipment should be attributed in accordance with the same principles. Support costs may not be attributable to single activity but rather provide the organizational infrastructure that enables output-producing activities to take place. Such costs should therefore also be apportioned on a reasonable, justifiable and consistent basis

ABI is using a top-down process in this project, meaning that determination of the final budget comes almost strictly from a compilation of experiences and judgments of the top and mid-level managers in the company. The higher-level managers break down costs into major categories, pass down their cost estimates to the next lowest level, lower-level managers break the major categories down into subcategories and so on until the estimation process reaches the lowest level of the company. By the end, each level knows the specific amount of money that it is allotted to complete the project tasks required at that level. Because the project is so extensive in price and risk, it would have been smarter for them use a bottom-up process which would have involved the employees who would actually be part of the work team so that management could get a more accurate estimate of the time and money that would be required to complete the project.