The administrator of the Westmount Retirement Home is concerned about the current cost accounting process. The administrator is unclear on how much each service offered was truly costing, and hence billed each resident the same cost per month irrespective of their needs.
Before, similar services were demanded by most patients, and therefore this pricing and costing system was not inappropriate. However, with demographic change to the residents, some residents needed extreme medical care, while others needed less care and were fit and healthy. A fresh pricing model had to be developed that represented the level of service and medical care required by each individual patient and both the size of suite inhabited.
PUBLICATION DATE: June 30, 2008 PRODUCT #: 908B02-PDF-ENG
Westmount Retirement Residence Case Study Solution
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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