| |Gardiner INC. |
Memo to the CEO
Re: Do You Need a Cost Accounting System Now?
Do You Need a Cost Accounting System Now?
1.-Summary of the most important points of the article in your judgment
1. Hospitals all over the nation have to deal with many costs, products, services, supplies etc. Having a better cost accounting system will help them to provide accurate information.
2. Financial Managers have been required to apply cost accounting concepts differently.
3. Hospitals will be using a new system they used to have cost-reimbursement and now they will be using fixed-price system.
2. - How could the content of this article apply to our company
Using this new fixed-price system will give us the opportunity to have different products and services by increasing volume trough calculated pricing. It will also help to advance effectiveness by using “raw materials” which those are the hospital labor and medical supplies. The new users of this new system will give them the opportunity for contribution.
3. - Why would profits be improved by implementing any points from this article?
We will be able to provide better services in the accounting system.
4. - Would you recommend that the company implement any ideas from this article?
5. - What did you like or not from what you read?
I liked the idea that hospitals want to better their efficiency, with their hospital labor and medical supplies. They are many products and services hospitals offer, also is appealing to point out those that will have that deal with the cost accounting process will be able to participate in this switch.