CASE REQUIREMENTS 1. Describe the major differences between private hospitals and public hospitals like St George. Explain the role of management accounting and control systems in this setting. 2. Describe Vera Jones' new accounting role. What would she be doing in her daily budgeting and performance monitoring activities? What challenges for Vera do you foresee because of this budgeting process? 3. Consider the current budgeting process at St George Hospital and address the following: a. What amount of funds (revenue) will St George Hospital receive? b. Determine whether the Orthopedic Unit can meet patient demand for arthroscopy and total hip replacement surgery. c. Is the Orthopedic Unit over or under budget for patient activity? Discuss your findings. 4. Using the information provided in the case: a. Prepare a flexible budget for the St George Hospital Orthopedic Unit. b. Identify the following efficiency and effectiveness variances and explain what these results mean for the St George Hospital Orthopedic Unit: i. Total sales variance for funds received; ii. Total variable cost variance; iii. Total fixed cost variance; and iv. Total volume variance. c. Calculate the following effectiveness variances and explain what these results mean for the St George Hospital Orthopedic Unit: i. Market size variance; ii. Market share variance; and iii. Patient mix variance. 5. In addition to the CEO Daily Scorecard, develop a series of performance measures for use within the Orthopedic Unit to ensure that clinical unit managers meet broader effectiveness expectations related to patient access to hospital treatment and quality patient care. Outline some of the key financial and nonfinancial metrics that would be suitable for this performance evaluation. You might want to present your results in a balanced scorecard format. 6. Describe the ethical issues presented in the case. Discuss how these ethical issues impact accounting choices or the fair reporting of accounting information. Highlight the role accounting can play in ethical decision making