Concept explainers
Josh O’Shea is the manager of the Cardiovascular/Respiratory Laboratory. This department is responsible for measuring blood gases, performing respiratory treatments, and distributing automated IV equipment. As a manager, Josh hires and trains personnel, prepares his departmental budget, and maintains the personnel schedule. Josh recommends equipment needs for the department, but he may be overruled in the acquisition process. Josh and his departmental personnel are paid for the professional credentials they hold, earn, and maintain and are reimbursed by the hospital for any approved training or professional credentials they acquire. Josh must use the equipment, reagents, and supplies provided to him from central purchasing. Based on this information, what incentives do you see as those that will motivate Josh as part of the hospital team, and why? Which incentives will be demotivating, and why?
Want to see the full answer?
Check out a sample textbook solutionChapter 12 Solutions
Principles of Accounting Volume 2
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Managerial Accounting (4th Edition)
Financial Accounting
Construction Accounting And Financial Management (4th Edition)
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
- Mementos Academy is assessing whether to outsource its student enrolment processes. The general process followed by staff in the enrolment office is to first validate students’ prior academic record (e.g., secondary school results) and send an offer of enrolment, provide degree advice and enter students’ study program details into the student record system, and collect fees. The following table shows the costs associated with these three processes: Cost Validation Student records Fees collection Staff salaries 70,400 43,900 39,700 Data processing 9,200 32,500 7,900 Telephone 1,700 4,600 3,000 Postage - 1,500 4,000 Consumables 3,700 45,900 11,800 Electricity 1,600 3,100 3,000 Equipment depreciation 12,200 35,800 31,900 Insurance…arrow_forwardShadyside Insurance Company manages a medical insurance program for its clients. Employees of client firms submit claims for reimbursement of medical expenses. Shadyside processes these claims, checks them to ensure that they are covered by the claimant’s policy, notes whether the claimant has reached any limit on coverage, computes any deductible, and issues a check for the claimant’s refund. Three types of clerks work in the claims processing department: supervisors, senior clerks, and junior clerks. The supervisors are paid $42,000 per year, the senior clerks are paid $37,000 per year, and the junior clerks are paid $32,000 per year. For every 150,000 claims processed per year, Shadyside plans to use one supervisor, six junior clerks, and two senior clerks. Last year, the company processed 2 million medical claims and employed 14 supervisors, 30 senior clerks, and 83 junior clerks. Required Compute the excess costs or cost savings relating to the claims processing staff. How would…arrow_forwardAurora Radiological Services is a health care clinic that provides radiological imaging services (such as MRIs, X-rays, and CAT scans) to patients. It is part of Front Range Medical Systems that operates clinics throughout the state of Colorado. a. What type of key performance indicators and other information would be appropriate to display on a data dashboard to assist the Aurora clinics manager in making daily staffing decisions for the clinic? b. What type of key performance indicators and other information would be appropriate to display on a data dashboard for the CEO of Front Range Medical Systems who oversees the operation of multiple radiological imaging clinics?arrow_forward
- Engagement Timekeeping Records. A time budget is always prepared for audit engagements. Numbers of hours are estimated for various segments of the work, for example, internal control evaluation, cash, inventory, and report review. Audit supervisors expect the worksegments to be completed “within budget” and evaluate staff accountants’ performance inpart on the ability to perform audit work efficiently within budget. Jessica Sara is an auditmanager who has worked hard to get promoted. She hopes to become a partner in two orthree years. Finishing audits on time is heavily weighted on her performance evaluation. Sheassigned the cash audit work to Paul Ed, who has worked for the firm for 10 months. Edhopes to get a promotion and salary raise this year. Twenty hours were budgeted for the cashwork. Ed is efficient, but it took 30 hours to finish because the company had added seven newbank accounts. Ed was worried about his performance evaluation, so he recorded 20 hours forthe cash work and…arrow_forwardMichael is the general manager of a production facility. In a routine day, Michael might meet with city officials or civic leaders about environmental issues due to the plant’s presence in the community. After these meetings, he will then meet with the plant’s functional managers to discuss the concerns expressed by the city representatives. Other times, Michael might meet with the production manager, Betty, and the human resource manager, Joyce, to discuss a complaint filed by one of the employees in a production department. Michael might also spend time on the Internet looking for new technologies that can be used in the production processes of his plant. What are the Social Responsibilies the company has towards society?arrow_forwardThe University of Dental Health (UDH) is a state-run university focusing on the education and training of dentists, dental assistants, dental hygienists, and other dental professionals. UDH has just hired a new controller who wants to organize UDH by responsibility centers so that responsibility accounting can be implemented. The controller has asked for your assistance in identifying each of the following UDH functions as either a cost center (C) or a profit center (P).arrow_forward
- The University of Dental Health (UDH) is a state-run university focusing on the education and training of dentists, dental assistants, dental hygienists, and other dental professionals. UDH has just hired a new controller who wants to organize UDH by responsibility centers so that responsibility accounting can be implemented. The controller has asked for your assistance in identifying each of the following UDH functions as either a cost center (C) or a profit center (P). UDH Center Cost or Profit Accounting Bookstore Cafeterias Career services Community workshops (providing continuing professional education necessary for state licensure) Custodial services Financial aid Human resources Information technology Residence halls Student parking lots (fee based) University newspaper/radio stationarrow_forwardFollowing are descriptions of 10 internal controls. The company has an organizational chart that establishes the formal lines of reporting and authorization protocols. Before a cash disbursement can be processed, all payee information must be verified by matching the payee to the company’s approved vendor listing. The company’s computer systems track individual transactions and automatically accumulate transactions to create a trial balance. On a monthly basis, department heads compare a budget to actual performance report and investigate unusual differences. The company must receive university transcripts documenting all college degrees earned before an individual can begin employment with the company. Senior management obtains data about external events that might affect the entity and evaluates the impact of that information on its existing accounting processes. Each quarter, department managers are required to perform a self-assessment of the department’s compliance…arrow_forwardRelco Industries recently purchased Arbeck, Inc., a manufacturer of electrical components that the construction industry uses. Roland Ford has been appointed as chief financial officer of Arbeck, and the president of Relco, Martha Sanderson, has asked him to prepare an organizational chart for his department at Arbeck. The chart that Ford has prepared is shown in the figure. Ford believes that the treasurer’s department should include the following employees: assistant treasurer, manager of accounts receivable and four subordinates, manager of investments and three subordinates, and manager of stockholder relations and two subordinates—a total of 13 employees besides the treasurer.The controller’s department should consist of an assistant controller, a manager of general accounting and four subordinates, a manager of fixed asset control and three subordinates, and a manager of cost accounting with four subordinates—a total of 15 employees besides the controller.When Ford presented his…arrow_forward
- Ray is a finance director in a public sector organization that has experienced difficulty attracting and retaining skilled staff. To assist in overcoming this problem, the board has engaged a consultant to recommend an improved benefits structure, to apply to all staff. The consultant has produced his report, and Ray has been asked to consider the proposed staff benefits structure, and make appropriate recommendations to the board. He study the report, conduct appropriate research, and assess the costs involved. He concludes that it will be necessary to increase staff costs, but believes these will be offset by the efficiencies brought about by recruiting and retaining high-quality staff. The report contains the following recommendations: Benefits should be related to the length of service of members of staff. After one year of continuous employment, a member of staff will qualify for private health insurance. Private health insurance should cover the member of staff and his or her…arrow_forwardRay is a finance director in a public sector organization that has experienced difficulty attracting and retaining skilled staff. To assist in overcoming this problem, the board has engaged a consultant to recommend an improved benefits structure, to apply to all staff. The consultant has produced his report, and Ray has been asked to consider the proposed staff benefits structure, and make appropriate recommendations to the board. He study the report, conduct appropriate research, and assess the costs involved. He concludes that it will be necessary to increase staff costs, but believes these will be offset by the efficiencies brought about by recruiting and retaining high-quality staff. The report contains the following recommendations: Benefits should be related to the length of service of members of staff. After one year of continuous employment, a member of staff will qualify for private health insurance. Private health insurance should cover the member of staff and his or her…arrow_forwardRay is a finance director in a public sector organization that has experienced difficulty attracting and retaining skilled staff. To assist in overcoming this problem, the board has engaged a consultant to recommend an improved benefits structure, to apply to all staff. The consultant has produced his report, and Ray has been asked to consider the proposed staff benefits structure, and make appropriate recommendations to the board. He study the report, conduct appropriate research, and assess the costs involved. He concludes that it will be necessary to increase staff costs, but believes these will be offset by the efficiencies brought about by recruiting and retaining high-quality staff. The report contains the following recommendations: Benefits should be related to the length of service of members of staff. After one year of continuous employment, a member of staff will qualify for private health insurance. Private health insurance should cover the member of staff and his or her…arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeBusiness Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:CengageEssentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage Learning