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

Suppose you have 10000 you wish to invest explain whether

Suppose you have $10,000 you wish to invest. explain whether you would be better off putting your money in the foreign or domestic alternative presented. (Assume that the level of risk is same for the two alternatives .) ...

Suppose uf needs 100 million to complete a stadium

Suppose UF needs $100 million to complete a stadium renovation project. They can offer a 9% coupon rate on a standard, 20-year bond. They would have to pay __________ yearly and __________ in total at the end of paying t ...

Ace inc incurred depreciation expenses of 21900 last year

ACE, Inc. incurred depreciation expenses of $21,900 last year. The sales were $811,400 and the addition to retained earnings was $14,680. The firm paid interest of $9,700 and dividends of $10,100. The tax rate was 40 per ...

If a portfolio is highly correlated with the new york stock

If a portfolio is highly correlated with the New York Stock Exchange then the investments are not risky enough to be profitable the investments relect market risk and will not benefit from increase diversification the in ...

On march 16 the march t-bond futures settlement price was

On March 16, the March T-bond futures settlement price was 101 21/32. Assume the 12 1/2 percent bond maturing in about 22 years is the cheapest bond to deliver. The CF is 1.4639. Assume that the price at 3:00 P.M. was 15 ...

Six flags entertainment corporationnet proft margin 1319

Six Flags Entertainment Corporation Net Proft Margin = 13.19% Industry NPM = 16.17% Asset Turnover Ratio = .35 Industry ATR = .42 Current Ratio = .97 Industry CR = .76 Debt Ratio = NA Industry DR = .35 EPS = 1.67 Industy ...

One of the most important operating expenses for the olde

One of the most important operating expenses for the Olde Virginia Brick Company is natural gas, which is used to bake and dry the bricks. Natural gas prices have recently been quite volatile, now approaching $6 per mcf. ...

Please explain the stepsstep 1 identification of a problem

Please explain the steps Step 1: Identification of a problem and the desired outcome wished to be achieved Step2: Identify the decision criteria by determining what factors are relevant in making decision Step3: Rank cri ...

The restaurant chain applebees international inc ticker

The restaurant chain Applebee's International, Inc. (ticker symbol, APPB) announced an increase of their annual dividend from $0.20 to $0.22 per share in December 2006. This continued a long string of dividend increases. ...

The school you would like to attend costs 100000 to help

The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell your 1,000 ?shares of Apple stock, 1,000 EE Savings Bonds (with $100 denominations and 4.25% c ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro