Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
CHAPTER-
1
the purpose of production of goods or for rendering service. Cost is measured by the
sacrifice made in terms of resources or price paid to acquire goods and services. Here
Most of the tasks performed by a hospital management are concerned with decision
making to make the best use of limited resources and exercise managerial control so
that resources are not wrongly or wastefully used. Relevant and reliable cost data will
rationally.
Cost analysis is defined as re-arranging and reclassifying cost and income data in such
Cost analysis is the process of identifying and expressing the financial impact of a
of department on the basis of statistical data that measures the amount of services
It is an effective management tool for controlling cost because each cost component
can be carefully analyzed and compared with the revenue to give an accurate financial
fixed and variable cost. It is used to ascertain the effect of changes in volume or type
of output on profit.
accurately for the future, to control business results, and to make a proper appraisal of
requires details about costs incurred and benefits obtained which are provided by what
Cost accounting is the recent development in the accounting world. Due to the failure
industrialists became more and more conscious about cost. Due to the growing
competition and partly because of the increased government control over pricing has
century.
expenditure with the object of ascertaining the total and per unit cost of a product or
service.
for the determination of the costs of products or services, and for the presentation of
suitably arranged data for purposes of control and guidance of management. Thus,
cost accounting relates to the collection, classification, ascertainment of cost and its
predetermined
standards.
The institute of cost and management accountants, London, has defined the term ‘cost
and techniques to the science, arts and practice of cost control and the ascertainment
of profitability. It includes the presentation of information derived there from for the
methods and procedures used to measure, analyze, or estimate the costs, profitability
company’s operations, for either internal or external use or both, and to report on
principles, methods and techniques in the ascertainment of cost and the analysis of
standards”
ascertainment of costs.
5. It determines the total and per unit cost of products and services.
6. It provides data for fixing the selling price of products and services.
7. It provides data to the management for exercising effective control over costs.
8. It provides data to the management for the use in forward planning and
decision-making process.
1. Costing:
classification, analysis and allocation) used to determine the costs of products and
services.
2. Cost accounting:
Cost accounting is the science which records and determines scientifically the
accurate cost of manufacturing or service per unit and controls and guides the
3. Cost control:
actuals, comparison of the actuals with targets to ascertain the variances, analysis
4. Budgetary control:
5. Cost audit:
Cost audit is the verification of the correctness of cost accounts and a check on the
The primary object of cost accounting is to find out the cost of unit of
are applied should always be to express faithfully and accurately the true
costs.”
1. To ascertain the total and per unit cost of the commodity produced,
orders.
during production
machines.
tenders.
11. To provide for cost control through budgetary control and standard
costing systems.
be summarized as follows:
The main advantages of a sound costing system to the manufacturers and management
are as follows:
1. Ascertainment of cost:
The principle object of cost accounting system is to ascertain scientifically the cost of
production and this is also the main advantage of cost accounting system. The cost
accounting system enables the manufacturer to ascertain exact cost per unit, per job or
per contract not only at the final stage of completion but also at various stages of
production or execution.
a business and thus affords valuable suggestion or elimination of those, which are
businessman with a reliable basis for fixing selling price of his products. Thus it
saves the manufacturer from losses, which may arise due to injudicious fixation of
4. Comparison of cost:
different establishments.
A sound business concern with a good system of costing attracts more investors as it
becomes easier to judge the financial strength and creditworthiness of the business.
It provides ready figures for use by the government for applications to the problems
like price fixation, price control, tariff protection, wage level fixation, payment of
The ultimate aim of costing is to reduce cost of production to the minimum and
maximizes the profits of the business. A part of the benefit resulting from the
reduction of the cost is usually passed on to the consumers in the form of lower
prices.
Many formalities are to be observed by a small and medium size concern due to
which the establishment and running costs are so much that it becomes difficult for
It is possible that two equally competent cost accountants may arrive at different
the profit and financial position. Installation of cost accounting system along with
The contribution of cost accounting for handling futuristic situation has not been
much. For example, it has not evolved any tool for handling inflationary situation.
Cost sheet is a statement designed to show the output of a particular accounting period
along with break up of costs. The data incorporated in cost sheet are collected from
There is no fixed form for preparation of cost sheet but in order to make the cost sheet
incorporated in cost sheet would depend upon the requirement of the management for
1. It discloses the total cost and the cost per unit of the units produced during
2. It enables the management to have a close watch and control over the cost
of production.
tenders.
7. By preparing cost sheet it is possible to find out the variations in costs and
total cost.
Basically there are two methods of costing as per CIMA terminology viz:
It is the category of basic costing methods applicable where the work consists of
or contract. Job costing, batch costing, and contract costing are included in this
category.
operations or process to whish costs are charged before being averaged over units
1. Uniform costing:
It is the use of same costing principles and /or practices by several undertakings
2. Marginal costing:
profit.
3. Standard costing:
A comparison is made of the actual cost with a pre-arranged standard and the cost
investigate the reasons for these variances and to take corrective action.
4. Historical costing:
costs actually incurred on work done in the past. It has a limited utility, though
5. Direct costing:
It is the practice of charging all direct costs, variable and some fixed costs relating
to operations, processes or product leaving all the other costs to be written off
6. Absorption costing:
It is the practice of charging all costs, both variable and fixed to operations,
processes or products. This differs from marginal costing where fixed costs are
excluded.
Marginal cost is the amount at any given volume of output by which aggregate
costs are changed if the volume of output is increased or decreased by one unit. In
marginal cost and of the effect of changes in the volume or type of output by
differentiating between fixed costs and variable costs. In this technique of costing
only variable costs are charged to operations, processes or products, leaving all
indirect costs to be written off against profits in the period in which they arise.
It is clear from the above that only variable costs form part of product cost in the
technique of marginal costing because only variable costs are charged if output is
All costs are classified into fixed and variable cost on the basis of
variability.
sales.
production volume.
there under or over recovery as fixed overheads are charges against the
contribution.
expenses can be divided into fixed and variable. In fact, no variable cost is
of the expenses are semi variable and it is difficult to segregate them into
turnover.
contracts unless a high percentage over the marginal cost is charged from
5. Some times an order from a new customer is accepted at a very low price
on the argument that if marginal cost is little less than the price of the
order it will give some contribution. This may some times lead to general
CHAPTER-
2
Emory defines research as “An organized inquiry designed and carried out to provide
Research methodology is always a comparison between options and choices that are
rather, the most effective approach for understanding and resolution of a chosen
problem depends on a large number of variables, not least the nature of the problem
itself.
Bechhofer says, “The research process is a clear cut sequence of procedures following
a neat patron and a messy interaction between the conceptual and empirical world,
Types of research:
1. Descriptive research:
for formulating more sophisticated studies. Using one or more appropriate methods
2. Analytical study:
The research design is considered to be the blue print for action, which is made before
A research design is a logical and systematic plan prepared for directing a research
study.
It specifies
A research design is the program that guides the investigator in the process of
The search for an answer to research questions calls for collection of data. Data are
facts, figures and other relevant materials, past and present, serving as basis for study
and analysis.
Primary data are first hand information directly collected from the original
source. The various methods of collecting these data were through observation, oral
interview, discussions and personal visiting to the concerned department with prior
appointments.
Secondary data are the readily available data that do not require the trouble
of constructing tools and administering them. The sources of collection of these data
were accounting records like purchase record, stock book, handouts, magazines, web
sites etc
Costing is the backbone of any organization to review its existing cost and to
Costing for this department (pathology) was not carried out for the last 2 years, as per
the company policy the prices of this department is revised once in 2 years.
• This study helps in identifying, classifying and ascertaining cost for each test,
which in turn helps the management in fixing the selling prices effectively and
efficiently.
• The scope of this study does not include the areas of design and development,
1. To identify and ascertain the cost associated with the corresponding tests.
them in arriving at correct diagnosis for the treatment and prevention of diseases.
• Reagents
Reagents are chemical solutions used to get the appropriate results of the
corresponding test.
• Control /Calliberation
They are chemical solutions that are required to be run through the machine
regularly to check whether it performs with in the normal range and provides the
results accurately.
In other words they are used to cross check or verify if the machine is in its proper
condition and whether the results of the tests are being provided accurately.
2) Cost Accounting:
Jawahar lal
Sikka T.R
Dr.O.R Krishnaswamy
G.R.Kulkarni.
7) Websites:
www.wochardthospitals.com
www.whhi.com
www.msn.com
www.msn encarta.com
2. The study does not take into consideration the extra cost that might be
3. The study does not consider the retesting cost incurred in some circumstances
This chapter throws light on the theoretical background of the topic selected,
this chapter summarizes the theory or conceptual framework with in which the
Second chapter deals with the design of the study i.e. research methodology
used statement of the problem, need, scope, objectives, sources of collecting data,
This chapter provides the information regarding the company in which the
In this chapter all calculations pertaining to the study are calculated, analyzed and
interpreted.
This is the final chapter of the study with the findings, conclusion of the over all study
CHAPTER-
3
HISTORY OF HOSPITALS
The term hospital derives from the Latin word Hospitals, which relates to guests and
their treatment. The word reflects the early use of these institutions not merely as
places of healing but as havens for the poor or for weary travelers. Hospitals first
and the monastery-based European Hospitals of the middle ages (5 th century to 15th
century). The hotel Dieu in Paris, a monastic Hospital founded in 660 AD, is still in
operation today, most people were treated for their illnesses by neighbors and friends
in their homes well into the 1800s. Hospitals changed radically after the civil war in
the early years of the war no Hospitals were available to treat the thousands of
soldiers who were wounded or became ill, but by the war’s end in 1865, 200 hospitals
with more than 137,000 beds had opened in the northern states. In addition to the
military hospitals that emerged during the civil war, many voluntary and public
Through out the 1850’s and 1860’s it was for more dangerous to receive care in a
Hospital than at home because of poor sanitation. As many as 25% of patients died
after surgery because hospitals of that area were over crowded, poorly ventilated, and
Patients care also improved as a result of the formal training of nurses at the first
Hospitals in New York, New Haven Hospital in connect cut, and Boston’s
laboratory in the 2890’s further improved the quality of care available to patients and
prompted the opening of many new hospitals, including religious hospitals and
hospitals that specialized in the treatment of women or children. The number for-
profit hospitals owned by Doctors also increased between 1890 and 1020.
INTRODUCTION
injured, or pregnant patients. Hospitals employ medical, nursing, and support staff to
provide in-patient care to pupil who required close medical monitoring and out-
patient care to people who need treatment but not constant medical attention.
Hospitals provide diagnosis and medical treatment of physical and mental health
physician training. Many hospitals also serve as centers of innovative research and
medical technology.
Hospitals being one of the health care providers are institutions providing medical
treatment and care to the ill and injured people. The state, charities, individuals, and
-Nursing homes.
DISTINCTIVE FEATURES
• High cost
ENVIRONMENTAL FACTORS
• Emphasis on service
• Absence of competition
• Intangible output
TYPES OF HOSPITALS
1. General Hospital
2. Specialized Hospitals
On the basis of the length of the stay by the patients they are classified as:
1. Short stay
2. Long-term care
2. Proprietary/Private/Corporate
3. Government owned
HOSPITAL DEPARTMENTS
emergency room surgical suites, intensive care unit, pediatric and maternity wards,
who have been trained to diagnose health problems quickly, these doctors and nurses
perform medical or surgical treatments that stabilize a patient condition so that the
patient can be moved to anther part of Hospital for additional case. When the
emergency room is crowded with patients, emergency department staff identifies and
respond immediately to the most seriously ill or injured patients, a medical approach
called triage.
The surgical suits include the actual operating rooms, where surgical procedures are
performed, and postoperative recovery rooms. All operating rooms have an operating
table that can be adjusted to accommodate the surgical procedure and facilitate the use
television screens, are brought into the operating room as needed. After surgery
patients are taken to the post operative recovery room, adjacent to the operating room,
Many hospitals offer two types of ICUs- one for patients who have had surgery and
one for patients with dangerous medical conditions, usually involving the heart.
Some hospitals also have ICUs for new borns or burn patients. Intensive Care Units
use monitoring equipment that transmits data on a patient’s condition directly to the
nurses station. ICUs also have on hand technology and medication that are specific to
the medical needs of the patients they serve. For example, new born ICUs have
equipment that is specifically designed to deliver Oxygen to tiny babies, while burn
units have special ventilation system to reduce the chance that patient will be expose
to infection.
The pediatric unit admits only children and is equipped with instruments and
machines that are suitable for the small size of its patients. Hospitals often prepare
children for a hospital stay by allowing them to visit before being admitted so that the
surroundings will seem less frightening during their stay. Some hospitals allow a
parent to stay in the Childs room during a hospital stay. Pediatric wards often have
play room for their young patients and organized special activities such as parties to
Hospitals also have departments that assists in the treatment of patients but that
are not involved in there day-to-day care. The department of radiology provides
internal images of the body to diagnose and treat diseases, the anesthesiology
department works with physicians to provide the safest type of anesthesia for a patient
during surgery and pain relief after surgery, and the pathology department examines
body tissues in a laboratory t diagnose disease. Some hospitals help patients in their
These professionals help patients regain normal physical functions following surgery
and relearn muscular controle and co-ordination in resuming every day tasks.
General Hospitals, regardless of their size, provide patients with a vide range of
services, including emergency treatment, surgery, and medical and nursing care.
such as children, or a disease, such as Cancer, Heart etc., and some specialized
New York, offers 37 specialized Cancer treatment centers, including centers for
ovarian cancer, and provides state-of-the-Art treatments for these Cancers that are not
generally available in other Hospitals. The institutes also conducts research on new
Cancer drugs and procedures, such as Photo dynomic therapy, which uses a laser to
Hospitals are also function as tertiary care centers, treating the most difficult and
complex cases or the most seriously ill patients. These may include patients who need
heart, lung, or liver transplants. Many Hospitals that serve as teaching institutions
train residents (Medical school graduates who are doing post graduate training) in
general medicines are specialty areas. Teaching Hospitals also train others interested
in a Health case career, including nurses and laboratory specialists. Although some of
these hospitals are relatively small and train only a few Doctors in teaching
programmes that are affiliated with medical schools approximately 300 Hospitals are
University-based academic medical centers that offer both medical training and
opportunities for medical research. Academic medical centers are usually massive
urban Hospitals linked closely with major medical schools. Although academic
medical centers represent only 6% of all U.S.Hospitals, they care for about 20% of all
patients nation wide because they serve as referral Centers for specialized
wide Regional areas. The medical center of the University of California at San
Francisco annually admits almost 27000 patients and treats about 340,000 out patients
in its clinics and 53,000 patients in its emergency room and trauma center.
Wockhardt Limited, established nearly four decades ago, is a research and technology
the United Kingdom and 4th largest in India, operating in 13 countries. It is also
credited
as the only super-specialty healthcare provider in India from the past 15 years.
New Drug Discovery. The company has a dedicated team of over 90 scientists
engaged in new drug discovery research and has several new chemical entities in the
program. As a hospital, their efforts are dedicated and committed to the creation of
clinical expertise and personalized care applied in the context of achieving patient
satisfaction can make their pursuit of excellence in health care highly rewarding.
Wockhardt Hospitals, India, currently operates the Wockhardt Hospital & Heart
Since then, these hospitals have become centers of excellence in their respective
fields, and draw patients not only from their cities, but also from surrounding states
five super-specialty hospitals in the next three years, of which three will be at
Mumbai and one at Bangalore. All these will have modern and world-class facilities.
Hospitals is committed to provide us with the best medical services in the country and
is known for offering a comprehensive and world-class care. It has all the assets that
make it the best, in-fact one of the foremost hospitals in the country.
The Kolkata center has expanded in a big way with the creation of the
Being one of its kinds in eastern India, the center offers several comprehensive health
Wockhardt has associated with Harvard Medical International, USA, to bring you
of-the-art surgical and Medicare facilities. Wockhardt will hold 51 percent of the joint
venture equity and the Government of Maharashtra with the funding assistance of the
focused hospitals, to offer you a comprehensive and world-class care, all under one
roof.
This hospital vows to offer you the best of cardiac care, with an excellent clinical
record of highly qualified and expert cardiac surgeons. It also has interventional
This hospital provides extensive medical and surgical care for patients with disorders of the brain,
spinal cord and peripheral nervous system. The neurologists and neurosurgeons are backed by the
most extensive neuro-diagnostic and imaging facilities including MRI and CT technology. Along with
providing general diagnostic x-ray imaging, Wockhardt Brain and Spine Hospital offers you a magnitude
of imaging services like EEG, EMG, Sensation 10 CT Scanner, Functional MRI with Spectroscopy,
ranging from trauma to minimal invasive arthroscopy. The clinical team is also specialized
in joint replacement surgery, ligament repair, knee & spine surgery, minimum access joint surgery,
uveitis, squint, orbital diseases and oculoplasty, cataract & intra-ocular surgery,
technology available in the hospital are OCTIII, IOL Master, FF 450 Fundus
To minimize surgical trauma, pain and blood loss to the patients, the hospital is
focusing more on the Minimal Access Surgery. Also known as keyhole or band-aid
surgery, it has been used for several years as an alternative to traditional open-
surgery. The hospital will provide excellent services in the areas of neuro-surgery,
VISION:
Maintaining the health of the world’s swelling population ranks amongst the
highest of social priorities and health care providers stand in the front line of
way
MISSION:
“To save and enrich the quality life of patients suffering from cardiac disease, through
the efficient deployment of technology and human expertise, in a caring and nurturing
environment with the greatest respect for human dignity and life.”
INTRODUCTION TO WHHI
the south Indian city of Bangalore, with a focus to excel in the field of cardiology and
tertiary level heart center providing cardiac care to patients of all age group including
infants.
Wockhardt Hospital & Heart Institute is ranked amongst the very best heart
Institutes in India and over the years has performed several thousand successful
cardiac surgeries and over a thousand angioplasties. This center is also tied-up with
five major medical insurance companies and with some of the premier heart institutes
of the world.
diagnostic and therapeutic capabilities, enables them to treat the most complex and
high risk cardiac patients. This has resulted in the institution being recognized
amongst the best heart hospitals in India and a treatment destination for cardiac
patients from not only their cities, but also from surrounding states and even
neighboring countries.
performed each year and the commitment to provide highest quality of cardiac care
with compassion and concern for each patient's well being has earned them the
The services include both invasive and non-invasive procedures along with all
OBJECTIVES
• Training and developing the best human resource as the key to deliver
Benchmarks.
Management.
International Alliances
A trusted name in Healthcare, Wockhardt Hospitals treat patients from all over South
Asia, South East Asia, the Middle East and Africa. A significant endorsement for
Wockhardt Hospitals is its tie-up with many global health insurance giants.
Wockhardt Hospitals is the first recognized hospital in South Asia on the worldwide
* BUPA, UK
high degree of clinical excellence, Wockhardt Hospitals has entered into two strategic
whereby Wockhardt has access to Harvard's expertise and experience in the field of
surgical and medicare services, as well as in setting up and developing hospitals of excellence
Wockhardt surgeons and paramedical staff will also benefit from Harvard Medical training and induction
in critical surgical and medicare services at Harvard's institutes at Boston, USA, as well as at Wockhardt
Hospitals.
Hospitals derives knowledge from various Harvard associated hospitals in the world to bring you
the global standards in technology and expertise.
Wockhardt will also benefit from the extensive learning and experience of Harvard Medical School. This
association will always help Wockhardt Hospitals to stay at the forefront of medical technology and
extend Harvard Medical School's tradition of improving the quality of health care
Adhering to the standards that have made Harvard one of the most respected
academic medical institutions in the world, HMI utilizes the talents of the Faculty of
Medicine, it's affiliated institutions and selected strategic partners. It has an extensive
www.hms.harvard.edu/hmi/newindex.html
Partnership Principles
Drawing upon the resources of Harvard Medical School and its affiliated institutions,
HMI is creating unique programs for Wockhardt hospitals committed to high quality
healthcare. The guiding principles used by HMI in this relationship are to maintain
# Nursing excellence
# Quality management
Nursing Care
Wockhardt follows global standards in nursing care. We believe that good nursing
Constant interaction and training from Harvard Medical faculty has inculcated not just
high levels of academic orientation but also a feeling of "Service from the Heart".
Milestones
Angioplasty in Karnataka.
BlueCross BlueShield.
and Bangladesh.
CHAPTER-
4
The Oxford College of Business Management. 48
Cost Analysis in Wockhardt Hospital
ANALYSIS
The data once collected need to be processed, as they cannot straight away provide
answers to research questions. They are like raw materials, which needs processing.
Data processing is an intermediary stage of work between data collection and data
analysis.
To analyze the data it was first classified according to different sections in the
clinical pathology. Than other information like the tests done under each of these
sections, the equipment/ instrument used, reagents, controls & calibrations and other
After classification and coding the mass data was tabulated in a concise logical order
in rows and columns along with its statistical figures to analyze the cost.
In order to extract meaningful information from the collected data, data analysis is
carried out. The data was first classified, coded and tabulated for the purpose of
INTERPRETATION
simplified/Analyzed. However, both analysis and interpretation are inter linked and
statement by interpretation.
Under the technique of marginal costing the total cost is divided into variable cost and
fixed cost.
V.C / Consu
1(A) STRY
(HITACHI)
21.44 Glucose
PLBS, RBS) PPBS, PLBS, RBS) 8,938 800 11.17 .74 1.89 15.80
29.80 2
23.31 Uric acid Uric acid 9,094 500 9 .74 1.89 22.82
GTT (5 times of
CALCULATI
ONS:
No of
CALIBRATO
R:
C.F.A.S 9,555 11700 0.82
2.74
Calibrator kit
ES:
Hitergent wash 4,443 11700 0.38
Lamp Cost 17715 11700 1.51
1.89
INTERPRETATION – 1(A)
Hitachi 17 different tests are being done. To do these tests the required reagent cost is
divided by the number of tests done using that reagent, to get the reagent cost per test
along with this the other costs like the control/caliberator and consumables costs are
The current cost when compared to the cost in jan-06 there is an increase as well as
decrease in the cost of the tests. The costs for some tests have decreased because the
Hence the variable costs for these tests have gone down, but the costs of remaining
tests have gone up for e.g. HDL cholesterol in the year 07 was costing 66.62/- but for
Note: - The tests for which the cost in jan-07 has not been mentioned are the newly
introduced tests.
TOTA Contr
1(B) Y
ERBA/TECNO
168:
45.36
Magnesium Magnesium 1,489 30 49.63 49.63
INTERPRETATION- 1(B)
different types of tests are being done. When compared to the year 2007 the cost has
increased in the year 2008 i.e. the cost for CPK in the year-07 was 188.24/- but in the
TOTA
L NO/O CONTR
1010
36.7
202.85 LH 28
210.
INTERPRETATION - 1(C)
On the equipment named ELECYS 1010- under biochemistry section as shown above
the variable cost per unit of all the tests have increased. For example T3 the cost for
the year-07 was 97.74/- there is been an increase up to 166.62/- in the year-08
TOTA
L NO/ CONTR
d reagent
Hemoglobi
172 n
24 hr urine
INTERPRETATION - 1(D)
Under this NYCARD instrument two types of tests are being done. The cost of micro
protein for the year-07 was 15.67/- which in the year-08 is increased to 21.28/- that is
TOT
AL NO/ CONTR
-2
ECOSYS-2
26 Electrolyte 68500
26 ABG 68500
13700 0.3
CONTROL
ABG
&ELECTR
OLYTE
INTERPRETATION –1(E)
Under the biochemistry section there are four instruments that is ECOLYTE –2 and
ECOSYS –2, on which two different types of tests i.e. electrolyte & ABG are done
the cost for both the tests have increased by 12.44/- each
CON
TRO
TOTAL L/
Y
(SYSMAX
1000/4500)
Haematology
profile:
1.
PT CONTROL 4892 80 15
28.
chloride 137 80 71
28.39 30.
36 30.36
1.
35 7.35
5.74 Reticulocyte 5.
PFM, AEC&
CT 15 1 00 15.00
300.
5. 1.
reagent cost) 90
62. 3.
52.71 45 68 66.13
COOMBS TEST
sera 499 30 63
19.
albumin 191 20 55
35 45.
88 45.88
14.
29 90 68 29.58
CONSUMAB
LES
Leishman stain 254 240 1.
06
1.
68
Tri sodium 1.
citrate (ESR) 50
INTERPRETATION –2
Under the hematology section 13 different types of tests are under taken the close
evaluation of each reveals that for all the tests there is been an increase in the cost per
unit.
For example under the hematology profile the cost for the year-07 was 12.62/- but
when compared to the cost in the year-08 it is 17.56/- hence there is an increase of
AL T RATOR S
V.C
JAN-
07
SEROLOG
3 Y -ECI
13. 37.
ONS
Hbsag control 7735 900 8.59
Hbsag
LES TEST T
49,725.0
0 67
SEROLOG
Y (CARD
METHOD)
23.9 HBSAG 600 25 24.00 24.00
78 103.7
INTERPRETATION –3
Under the serology section there are two methods of doing the tests, one is using ECI
instrument & the other one is card method. Under both the methods the cost for the
Using ECI- for example the cost to do HIV test in the year-07 was 171.46/- but in the
year-08 the cost is 181.93/- hence there is an increase of 10.47/- per test.
Under card method the cost to do HIV test in the year-07 was 78/- when compared the
cost in the year-08 is 103.75/- therefore there is an increase of 25.75/- per unit/test.
JAN- TES RE -
4 MICROBIOL
OGY:
BLOOD
INF.BROTH 22 1
MULLER HINTON
AGAR PLATE 17 1 17
UREASE 18 1 18
TRIPLE SUGAR IRON 17 1 17
44.86 ISOPROPANOL 77 500 0.154 124.154
URINE
CULTURE &
MAC CONKEY AGAR 25
SENSITIVITY PLATE 25 1
MULLER HINTON 17
AGAR PLATE 17 1
UREASE 18 1 18
CITRATE 21 1 21
25.63 TRIPLE SUGAR IRON 17 1 17 98
SPUTUM
CULTURE &
MAC CONKEY AGAR
SENSITIVITY PLATE 25 1 25
BA/CA PLATE 25 1 25
MULLER HINTON
AGAR PLATE 17 1 17
UREASE 18 1 18
CITRATE 21 1 21
23.87 TRIPLE SUGAR IRON 17 1 17 123
FLUID PLATE 25 1 25
SEMEN C/S BA/CA PLATE 25 1 25
MULLER HINTON
TIPS UREASE 18 1 18
CATHETER
TIPS CITRATE 21 1 21
TRIPLE SUGAR IRON 17 1 17
BRAIN HEART
INF.BROTH 22 1 22 145
AGAR PLATE 17 1 17
UREASE 18 1 18
CITRATE 21 1 21
TRIPLE SUGAR IRON 17 1 17
STERILE SWAB 7 1 7 130
THROAT
SMEAR &
STAIN
MALACHITE GREEN
GRAM &
FUNGAL
STOOL C/S
< 2 YEARS MA 25 1 25
MACS 25 1 25
SS AGAR 22 1 22
TSI 17 1 17
UREASE 18 1 18
MH 17 1 17
69.84 DISC 6 1 6 130
> 2 YEARS MA 25 1 25
BSA/SS 25 1 25
MH 17 1 17
TSI 17 1 17
UREASE 18 1 18
DISC 6 1 6 108
ANAEROBIC
CULTURE FTM 17 1 17 17
13.92 AFB
CULTURE LJ MEDIUM 28 1 28 28
FUNGAL SAB/DEATROSE 22 1 22 22
CULTURE AGAR
INTERPRETATION – 4
In the microbiology section also the variable cost per test have increased , example for
Blood culture & sensitivity the cost for the year-07 was 44.86/- but in the year-08 it is
As mentioned earlier the cost of many newly introduced tests have been calculated
afresh hence they cannot be compared as the current year is only the base year for
V.C TOTAL
5 PATHOLOGY:
URINE
ROUTINE:
SPECIFIC
GRAVITY
BLOOD
PH
URINE
ALBUMIN
BILESALTS & SLIDE COST 1.17 1 1.17
BILEPIGMENTS (FOUCHETS) 68 15 4.53 5.7
AMPHETAMIN
STOOL
ROUTINE:
STOOL
HANGING
REDUCING
INTERPRETATION – 5
This is the last section of the department and as seen earlier the above figures show a
For example under the urine routine analysis multistix cost for the year-07 was
unit.
SALARIES
RENT
DEPRECIATION
Depreciation on computers
Depreciation is calculated at the rate of 20%, the total amount of two systems with
Depreciation on furniture
20,000
POWER
MISCELLANEOUS EXPENSES
This includes the administrative cost, maintenance cost, marketing cost & annual
Based on the analysis of cost for the individual tests following health check up
KIDENEY PROFILE
Blood urea nitrogen 29.8 27.29
LIPID PROFILE
ECG 28.78 30
LIVER FUNCTINING
TESTS
Stationeary 22 25
KIDENEY PROFILE
LIPID PROFILE
LDL - 100.43
ECG 28.78 30
(PER UNIT)
PARTICULARS 7- 8-JAN
JAN
PRICE
800 800
(-) VARIABLE COST
Consultation with 22 25
physician
100 100
408. 414.3
7
CONTRIBUTION
(per unit)
391. 385.7
3
PARTICULARS 7- 8-JAN
JAN
Hb,TC,DC
Consultation with 22 25
diabetologist
150 365 150 367.99
CONTRIBUTION
(PER UNIT) 185 182
(-)VARIABLE COST
LIPID PROFILE
stationeary 22 25
T3 97.74 166.62
T4 149.24 219.85
Stationeary 22 25
(PER UNIT)
LIPID PROFILE
ECG 28.78 30
Stationary 22 25
CONTRIBUTION 589 94
(PER UNIT)
LIPID PROFILE
LDL - 100.43
KIDNEY PROFILE
ECG 28.78 30
stationery 22 25
2936 3519
(PER UNIT)
07 (PER 08 (PER
UNIT) UNIT)
A. Basic
Management
Programme
TOTAL
N 0
1,94,100
INTERPRETATION
As shown in the above table the sales in the month of jan-08 has shown an
increasing trend when compared with the number of units sold in jan-07. Though
the sales is increased, there is a considerable amount of decrease in the profit i.e.
11%.
The reason for this decrease is due to the decrease in contribution per unit in turn
it is the increase in the variable cost per unit of the all the health check up
packages and also because of the increase in the fixed cost due to internal and
external factors.
From the above analysis & interpretation the following revisions in the selling prices
ULARS 4 N S BUTIO
1 2 (1+2)= N
3 (3-4)=5 6 (5*6)=7
TOTAL 12,25,20
PROFI 10,02,10
T 0
ULARS 4 N S BUTIO
1 2 (1+2)= N
3 (3-4)=5 6 (5*6)=7
TOTAL 16,67,75
PROFI 14,44,65
T 0
ULARS 4 N S BUTIO
1 2 (1+2)= N
3 (3-4)=5 6 (5*6)=7
TOTAL 1776950
PROFI 1553850
CHAPTER-
5
FINDINGS
1) The variable cost for all the health check up packages (test) have increased
2) The fixed cost which consists of salaries, rent, power, depreciation and
3) The contribution per unit of all the health check up packages has reduced due
4) There has been an increase in the total lost and hence the overall profit is
reduced.
5) The fixed cost for jan-2007 was 1,94,140/- which is increased in jan-2008 by
SUGGESTIONS
Keeping in view the objectives the following suggestions are put forth:
1. Keeping in view of increase invariable cost and fixed cost the prices are to be
3. The health check up package is mostly under taken by the corporate hence the
hospital should maintain a good relation with the corporate sectors and interact
frequently with employees which in turn will help to gain the patients
programmes.
4. The hospital should promote its services by making the public aware of its
5. To maintain and increase its sales volume the hospital needs to concentrate
CONCLUSION
The efficient administration of any organization depends upon the efficient utilization
of its resources- 5Ms namely Men, Machine, Material, Market and Money, a health
The pivotal role of money is evident from the fact that, itself being a resource,
money is used for acquiring as well as having command over the other resources and
The rapid growth in health care facilities, scientific and technological innovations
makes the decision making process even more complex. Understanding the financial,
cost and economic implication of decision making is one of the most critical areas
In the present health scenario, which is very dynamic, it is imperative for a health
care professional to have a sound knowledge of cost accounting and efficient financial
After analysis the data I, have come to a conclusion that no doubt the hospital is
efficient in increasing its sales, but due to the increase in the total cost its profit is
been affected and hence I, also feel that there is an urgent need to revise their selling
price. As per the company policy keeping in view the long run 15% hike in the selling
price is required.
SOURCES OF FUNDS
EQUITY SHARE CAPITAL 6 6 25
PARTICULARS
• Cost Accounting :
Bhabatosh Banerjee
Sikka T.R
Dr.O.R Krishnaswamy
G.R.Kulkarni.
• Websites
• www.wochardthospitals.com
• www.whhi.com
• www.msn.com.
• www.msn encarta.com.
Nisha
9986103327