Allocation of Costs Using ABC Data Analysis Chapter

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The notes in the around the Activity box are actions needing fixed at the present time such as detecting allocation and costs and most importantly the priorities of the hospital's maintenance.

The diagram then has a box drawn below labeled objects in both methods, yet these objects are defined to ABC by tracing activity drivers because it represents products/services and customers while the current method looks at only products and services of pharmacy maintenance repairs which is derived from the custom way where allocations such as the direct cost of supplies, labor, administration on the basis of square footage. The focus is on costs vs. Activity-Based Costing and cost cannot control expenditures, yet it in comparison to cost accounting current at Jumper Hospital, it will permit the facility to see the what they do have control of, what has been done including the management that provided regularly or on a daily basis.

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It also looks at the pharmacy manager's idea to reconsider what high-tech departments require expensive repairs to eliminate useless issues that produce know profit and determine pharmacy expenditures to provide patients with the benefits, products, and services that they need daily like medications which are 90% of the overall profit within the company. Considering the tables and their information for pharmacies and other departments, it took up 200,000 sq ft, with $1,600 in the amount of repairs with 8,000 hours needed, as well as, $160,000 supplies that were used. Yet routine maintenance repairs was 2,000 sq ft less than the overall, and need prioritizing according to necessity of the objects in the ABC approach......

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