Westmount Residence Pension administrator is concerned about the current system of cost accounting. The administrator is not clear on how much each service provided was really worth and therefore are charged each resident the same price per month, regardless of their needs. In the past, most patients require such services, and, therefore, this pricing and costing system was correct. However, with the demographic changes of the population, some residents require intensive medical care, while the others were healthy and in good shape and require less maintenance. The new pricing model should be developed, which affects the size of the set of living and level of medical care and services necessary for the individual patient. "Hide
by Mary Heisz, Nicole Shomair Source: Richard Ivey School of Business Foundation 10 pages. Publication Date: June 30, 2008. Prod. #: 908B02-PDF-ENG
Related Case Solutions & Analyses:
Sephora Direct: Investing in Social Media Video and Mobile
Coca-Cola in 2011: In Search of a New Model
Auditors Gone Wild: The Other Problem in Public Accounting
Ultratech Corp. (A)
Determinants of Investment
Saudi Arabia: Ready for Takeoff?
Valuing Wal-Mart Stock
BCE Inc.: In Play
TRX, Inc.: Initial Public Offering
Aussie Pies (D)
