Chapter 8 Cost Accounting Flashcards
Costs that can be classified by accounting function that are present and future costs that help management make better decisions.
Managerial Accounting Costs
Health Care Organizations assign costs to procedure and services, the method that is the easiest to apply in an organization is
One time allocation from nonrevenue departments to revenue departments
Direct Apportionment
Methods for determining product costs or costs by products, utilizes the relationship of costs to charges for the product ie DRG, patient days and outpatient visits
Ratio of Costs to Charges
Costs that can be classified by management function that are associated with producing the product or providing the service.
Operating Costs
Costs that can be classified by traceability that include both direct and indirect costs
Full Costs
Costs that can be classified by behavior in relation to volume that change incrementally in response to changes in volume
Semivariable Costs
Health Care Organizations assign costs to procedure and services, the method that involves a two step allocation that takes into account simultaneous apportionments in the first step is
Two-time allocation, but includes multiple allocations among NR departments and multiple allocations among R departments before the final allocation from NR departments to R departments
Multiple Apportionment
Health Care Organizations assign costs to procedure and services, the method that involves a two time allocation; first involving allocation among NR departments and at the same time, among R departments, before the final allocation from NR departments to R departments
Double Apportionment
Health Care Organizations assign costs to procedure and services, the method that involves a two time allocation and takes into account the disadvantages of direct apportionment method
Step-Down Apportionment
Methods for determining product costs or costs by products. This method of determining product costs utilizes cost drivers, or activity measures to assign indirect costs to products ie DRG, patient days and outpatient visits
Activity-Based Costing
Methods for determining product costs or costs by products, ie DRG, patient days and outpatient visits, This method of determining product costs utilizes a sampling of the products actual direct costs and develops and RVU by each product
Job-Order Costing
The analysis of costs, including methods for classifying costs, allocating costs, assembling costs, and determining product costs
Cost accounting
Process of allocating both direct and indirect costs from the departments that do not generate charges to the departments that do generate charges (a.k.a. cost finding, cost analysis)
Cost allocation
Most accurate appointment method for allocation
multiple apportionment
Must practical appointment method for allocation
double apportionment
