Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Management Expert

problem 1: The Harold Shipman Private Healthcare Clinic Ltd specialises in hip, knee and shoulder replacement operations that it carries out for private health insurance firms and for some NHS Trusts. As well as providing these surgical procedures it offers pre-operative and post-operative care in a fully equipped private hospital for patients undergoing these procedures. Surgeons are paid a fixed fee for each procedure they perform and an additional amount for each follow up consultation which are given if post operative complications arise. No extra fee is charged to patients for follow up consultations. All the other staff receives annual salaries.

The company’s overhead is currently apportioned on revenues to each surgical specialism. The following forecast data for 2014 is made available:

1003_managerial finance.jpg

Required:

i) Prepare a Marginal Cost Analysed Income Statement for 2014 from the above data to identify total and individual medical procedure contributions and profits (apportion the overheads as indicated above to each procedure). Identify the profit and contribution per procedure.

ii) The senior surgeon has voiced the opinion that apportioning overheads on the basis of revenues is misleading and instead should be apportioned on the number of hours incurred on each procedure. Reconstruct the Marginal Cost Analysed Income Statement to reflect this proposed accounting treatment. Also identify the profit and contribution per procedure. Comment on your results.

iii) The Scutari NHS Trust has approached the clinic to undertake some additional knee operations. This would involve operating on a further 50 patients which the clinic has capacity to handle. The trust is offering to pay £250,000 for fulfilling the contract. Advise the clinic what decision should be made regarding the proposed contract based on financial grounds.

problem 2: You have been appointed as a management intern in the Carbon Neutral Group Plc an international company manufacturing alternative green energy systems. This involves you obtaining a wide company experience by working in different divisions of the company. Currently you have been seconded to the production department.

 At a production departmental meeting you hear Richard Head the production manager state that,

“Budgeting is a waste of time. I don’t see the point of it. It tells us what we can’t afford but it doesn’t keep us from buying it. It simply makes us invent new ways of manipulating figures. If all levels of management aren’t involved in the setting of the budget, they might as well not bother preparing one.”

Required
:

In an academic essay identify and describe the objectives of a budgetary control system and discuss the concept of a participative style of budgeting in terms of the objectives you have identified supported by credible academic citations.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M95272
  • Price:- $70

Priced at Now at $70, Verified Solution

Have any Question? 


Related Questions in Financial Management

The narrow gravel road to jenzen lake is open only for the

The narrow gravel road to Jenzen Lake is open only for the summer months. At present the county spends $750 per mile to prepare the road for summer traffic and another $150.00 per mile for maintenance for the period that ...

You have been asked to quantify the effects of removing a

You have been asked to quantify the effects of removing a country's tariff on sugar. The hard part of the work is already done: Somebody has estimated how many pounds of sugar would be produced, consumed, and imported by ...

T-bill discount newly issued three-month t-bills with a par

T-Bill Discount Newly issued three-month T-bills with a par value of $10,000 sold for $9,700. Compute the T-bill discount.

Te demand for snorkels in berhama is given by qs 500 -

The demand for snorkels in Berhama is given by Q S = 500 - 8P S , and the supply of snorkels in Berhama is given by Q S = 200 + 4P S . The demand for kayaks is given by Q k = 650 - 6P k , and the supply of kayaks is give ...

Bull in 1901 the first us open golf championship was held

• In 1901, the first U.S. Open Golf Championship was held. The winnerAccs prize money was $330. In 2012, the winnerAccs check was $1,650,000. • What was the annual percentage increase in the winnerAc€?cs check over this ...

A brokerage house purchases an sampp 500 futures agreement

A brokerage house purchases an S&P 500 futures agreement for $300,000. On the delivery date, the S&P 500 Index is 575. Does the brokerage house make a profit? What if the S&P 500 is 625?

The stock of akpan ltd performs well during recessionary

The stock of akpan ltd performs well during recessionary periods, and the stock of okon ltd does well during growth periods. both stocks are currently selling for Rs 100 per share you asses rupes return {dividend plus pr ...

In each of the following fictitious examples tell whether

In each of the following fictitious examples, tell whether the money multiplier will increase, decrease, or stay the same: a. Depositors become concerned about the safety of depository institutions, and there is no depos ...

Each of the following questions should be answered by

Each of the following questions should be answered by building a 15-period binomial model whose parameters have been calibrated to a Black-Scholes geometric Brownian motion model with: T = 0.25 years, S 0 =100, r=2%, s=3 ...

The eitc provides a cash subsidy for every 1 earned by

The EITC provides a cash subsidy for every $1 earned by those with incomes below $36,348 per year. How might the EITC raise an individual's overall work effort? How might the EITC lower an individual's work effort?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate