Evaluating Performance and Non value- Added Costs in a Doctor’s Office

Two-part assignment – All parts must be at least 200 words unless otherwise noted. Please read all attachments and follow ALL instructions.

Part 1: Evaluating Performance
When comparing various divisions within a company, describe what problems can arise from evaluating divisions that have different accounting methods, as described in Chapter 11 of your text. Cite three examples of accounting methods that could cause divisions’ profits to differ. Your initial post should be 200-250 words.

Part 2:   Non value- Added Costs in a Doctor’s Office
(Exercise 12-12) Dr. Steve Rosenthal has his own medical practice. He specializes in the treatment of diabetics. His staff consists of a receptionist, two nurses, a lab technician, and a dietitian. As patients enter the outer office, they check in with the receptionist. The patient then waits until called by a nurse. When called, the patient moves from the waiting room to the inner offices. The patient must weigh in and is then assigned a room. The nurse assigning the patient to a room gathers all the personal data for updating the medical records, such as insulin dosage, medication, illnesses since last visit, etc. The nurse also takes an initial blood sample for blood sugar testing and performs a blood pressure test. The patient then waits until the doctor comes in. After the doctor’s conference, the nurse returns to take more blood samples, depending on what is ordered by the doctor. The patient then waits until the dietitian comes to review eating habits and talk about how to improve meal planning and weight control. The patient returns to the receptionist to pay for the office visit and to schedule the next visit.

In your response include the following:

Identify the activities in the doctor’s office that fall into      process time, inspection time, move time, wait time, and storage time.
List the activities in the doctor’s office that are candidates for      non value-added activities. Explain why you classify them as non      value-added activities.

Required Resource
Text
Schneider, A. (2017). Managerial Accounting: Decision making for the service and manufacturing sectors (2nd ed.) [Electronic version]. Retrieved from https://content.ashford.edu/
· Chapter 11:  Analysis of Decentralized Operations
· Chapter 12:  Costs of Quality and Other Cost Management Issues

Recommended Resource
Multimedia
Lombardo, J. (2018, February 11). The rational decision making model: Steps and purpose in organizations (Links to an external site.) [Video file]. Retrieved from https://www.youtube.com/watch?v=pOqi9NPTVoY

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