Purchase Solution

Cost Accounting for ABC Home Health Agency

Not what you're looking for?

Ask Custom Question

The financial results of ABC Home Health Agency for the current year are summarized below for each of its four divisions {see attachment}. Unavoidable headquarters' costs of $1,240,000 included in the total costs have been distributed to the divisions on the basis of revenue. The remaining portion of the total $6,126,000 of costs have been incurred at the divisional level and can be avoided if a division is closed.

Which division(s) of the ABC Home Health Agency, if any, should be shut down due to failure to cover divisional costs? Please show your work.

Attachments
Purchase this Solution
Solution Summary

The expert examines cost accounting for ABC Home Health Agency. The basic revenues for divisions are given.

Solution Preview

See the attached file for the help on the question. Hope this will help. Thanks

The financial results of ABC Home Health Agency for the current year are summarized below for each of its four divisions. Unavoidable headquarters' costs of $1,240,000 included in the total costs have been distributed to the divisions on the basis of revenue. The remaining portion of the total $6,126,000 of costs have been incurred at the divisional level and can be avoided if a division is closed.

ABC Home Health Agency Operating Results
for the Year Ended December 9, 1997 (000s omitted)

Divisions
Total North South East West
Revenue 6,590 990 2,640 980 1,980
Total ...

Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

View More Free Quizzes
Related BrainMass Solutions

  • Cost accounting relevant to health care organizations

    New concepts of cost accounting like Lean Accounting are helpful for health care industry as like other industries.

  • Managerial Economics, Profits and Various Costs Calculations

    ABC Corp. owns a piece of land and building a few miles from its headquarters. The land originally cost ABC $500,000 to purchase. ABC is considering using the facility for a new training program.

  • Cost Accounting Problems

    ABC is a cost accounting methodology that can define processes, identify the cost drivers of those processes, determine the unit costs of products and services, and create reports on agency components that can be used to generate activity- or performance-based

  • Activity-Based Costing

    ABC is a cost accounting methodology that can define processes, identify the cost drivers of those processes, determine the unit costs of products and services, and create reports on agency components that can be used to generate activity- or performance-based

  • Policy Calculations Insurers Operate

    Define agency costs and discuss whether these costs reduce business value. Agency cost is an internal cost that is paid to an agent.

  • Article Analysis Summary

    Hence ABC is more accurate cost management system as it is used to identify, describe, assign costs to, and report on agency operations.

  • Sparkling Automotive Company: Slides for presentation

    For full costing the term has been used as true cost accounting. Direct costs and indirect cost will be allocated in full costing. SAC can apply the term full cost accounting when they account spark plug for automotives.

  • Accounting Problem: Mental Health Agency

    436976 Accounting Problem: Mental Health Agency Consider the following scenario: Dr.

  • Describe fee-for service and activity based costing (ABC)

    480038 Describe fee-for service and activity based costing (ABC) 1.

View More Related Solutions