Description
Cost behavior is the term used to summarize the impact of costs that are influenced by volume. On a financial statement, these costs are identified as variable costs. Understanding the role of both fixed and variable costs in a
Assume the role of a financial consultant. You have been hired by a small non-profit hospital, struggling with profitability. You have been given full
- Create a one-page outline of the work you will be performing. This outline will be given to the CFO.
- On a separate page, using fictional information, depict the hospital's cost behavior.
- You may include graphics, such as pie charts or graphs, to illustrate.
- Cost drivers should be clearly defined
- One-page in length
- On a separate page, provide a recommendation summary for the CFO. This should include specific areas of concern to address, as well as areas of strength to continue supporting. Your wording should be professional and concise.
- Include a minimum of three references in APA style on a separate page
- Submit all four pages as part of one Word
document
Please review the rubric to ensure that your assignment meets criteria.
Submit:
- Fixed and Variable costs document
Rubric
HC306 - Unit 3 Assignment 2
Criteria | Ratings | Pts | ||||||
---|---|---|---|---|---|---|---|---|
This criterion is linked to a Learning OutcomeContent |
| 15.0 pts | ||||||
This criterion is linked to a Learning OutcomeAnalysis |
| 25.0 pts | ||||||
This criterion is linked to a Learning OutcomeWriting |
| 5.0 pts | ||||||
This criterion is linked to a Learning OutcomeAPA |
| 5.0 pts | ||||||
Explanation & Answer
Attached.
Running head: COST BEHAVIOR
1
Cost Behavior
Institutional Affiliation
Name
Date
COST BEHAVIOR
2
Work Outline
i.
Review and analyze the financial performance of the hospital
As a financial consultant, I first need to review how the hospital has been performing in
the past few years and then analyze on the sectors that require improvements in order to make
the hospital marketable as well as profitable.
ii.
Ensure revenue and expenses are matched
Profits are determined on how an institution balances its revenues and costs, so I will
look into the hospital’s expenses as well as revenues in the journal entries, and ensure that they
match.
iii.
Prepare financial and statistical monthly program
This will help the hospital to focus on the long-term and short-term goals, and it will
involve the senior decision-makers who will approve of the financial plans and improvements
that will be proposed (Culyer, 2018). This program will systematically guide on how revenues
are supposed to be collected and the type of expenses that the institution should be transacting.
iv.
Prepare year-end audit working papers
This will focus on the analysis of the revenue as well as expenses and the general
financial performance of the hospital...