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Cost per patient-year N$22 000 N$29 800 N$22 667 1 3 Advantages (benefits) which Medicare could obtain by implementing an ABC system: 1 Medicare can gain a more detailed understanding of costs and cost drivers This is useful from a cost management perspective 2 ABC will help Medicare identifying which programs are the most costly to operate 3
1 Explain the meaning and scope of cost accounting; 2 S tate the objectives of cost accounting; 3 D ifferentiate between cost accounting and financial accounting; 4 Comprehend the importance of cost accounting ; 5 Understand the Objections to Cost Accounting and rebuttal thereof ; 6
• The amount of pension cost for defined benefit plan shall be determined by the use of an immediate-gain actuarial cost method • The amount of pension costs for a cost accounting period are assignable only to that period • Costs are allocable to the extent that they are funded • Effective date: March 30, 1995 - Next cost accounting period
Where Y = total cost, in thousand dollars and X = output in thousand units ii) If the output is 22 000 units, we would expect costs to be 28 + 2 6 x22 = 85 2 = N$85 200 b) We might guess that the trend line is rising steadily, by (57 – 40)/4 = 4 25 per quarter in the
ASSIGNMENT 1 QUESTION 1 [16 Marks] a) No Statement Financial Accounting Management Accounting Mark 1 Prepares financial statements 2 Emphasis is on the past rather than the future 3 Focuses on parts as well as the entire enterprise 4 It is subject to the principles of GAAP 5