In Exhibit 14 within Chapter 4, the text divides the operations of a hospital into five activities and assigns a cost to each of these activities. As a result, each customer is assigned only the costs of the hospital services (activities) he or she uses.

REQUIREMENT 1: Select a type service business. You may not use a hospital.

REQUIREMENT 2: List the activities that the business would perform in providing its services to customers. For example: A Bank is a service business. The activities involved in loan processing would be: meeting with clients, reviewing applications and running credit reports.

REQUIREMENT 3: Write a memo to the owner of that business explaining how activity-based costing could assist him or her with managing the business. In the bank example, a discussion about the cost drivers associated with the activities would be needed: Hours of meeting time, number of applications received, and number of credit reports run. After identifying the activities and cost drivers, an explanation would be given on how using an activity-based costing method would help the bank operate more effectively? How would management use the activities and cost drivers?

ALTERNATE REQUIREMENT 3: Post a video of you explaining to the owner of the business how activity-based costing could assist him or her with managing the business. If you have used video resources before, please use the technology you are most comfortable with. Below I have listed a few different video resources. With a lot of industries moving employees to work remotely, you will find yourself using video conferencing to meet with clients, management and staff. I encourage you to go outside of your comfort zone and try something new.

For REQUIREMENT 3 you may select your preference. Either submit a professional memo OR upload a video. The video can be of you discussing how activity-based costing could assist managing the business you selected or it can be a power point with your recorded voice.

ACCEPTABLE LENGTH

Submit a memo that is 1 page.

Submit a video that is 3 to 5 minutes

FORMATTING REQUIREMENTS

12-Point Times New Roman Font

Cite Used Sources If Applicable

TO SUBMIT

Upload the completed paper in a MS Word document through this assignment link.

Upload the video through this assignment link

HOW TO WRITE A PROFESSIONAL MEMO

Click HERE to view the format of a professional memo. Pay close attention to the various parts of the memo: Header, opening, context, solution, closing, etc.

VIDEO RESOURCES

Loom provides a quick and easy way to capture your screen in a video to send to your instructor. It provides the option of capturing your screen only or capturing your screen and your webcam simultaneously- viewers can see your screen and you talking at the same time. [https://www.loom.com/].In response to COVID-19, Loom has extended their trial period from 14 days to 30 days, removed the limitations on the amount of videos you can share with a free account, and provides Pro access for free during the trial period.

Screencast-o-matic provides a free and easy-to-use screen recorder, you can capture any area of your screen with the option to add narration from your microphone and video from your webcam. Sharing your ideas has never been easier!

Review the rubric PRIOR to submitting.

Within the Course Resources Menu in this Blackboard Course there is a folder called "Enhancing Your Writing Skills". Take time to review the valuable information provided. The folder addresses how to enhance your writing skills, plagiarism, and citing sources.

169 Chapter 4 Activity Based Costing Exhibit 14 Activity-Based Costing Method-Hopewell Hospital Admission Radiological Testing Operating Room Dietary and Laundry Pathological Testing 5120 per 5180 per admission $150 per day $120 per specimen $200 per operating room hour adiologias To illustrate, assume the following data del Budgeted costs 0.000 Total estimated activity base usage 3.000 images The activity rate of $320 per radiological image is computed as follows Budgeted Activity Cost Activity Rate Total Activity Base Usage Budgeted Radiological Testing Costs Radiological Testing Activity Rate Total Estimated Images $900.000 3.000 images $120 per image The activity rates for the other activities are determined in a similar manner. These activity rates along with the patient activity base usage are used to allocate costs to patients as follows: Activity Cost Allocated to Patient Patient Activity-Base Usage X Activity Rate To illustrate, assume that Mia Wilson was a patient of the hospital. The hospital overhead Services activities) performed for Mia Wilson were as follows: Admission.... Radiological testing Operating room Pathological testing Dietary and laundry Patient (Mia Wilson) Activity Base Usage 1 admission 2 images 4 hours 1 specimen 7 days 169 Chapter 4 Activity Based Costing Exhibit 14 Activity-Based Costing Method-Hopewell Hospital Admission Radiological Testing Operating Room Dietary and Laundry Pathological Testing 5120 per 5180 per admission $150 per day $120 per specimen $200 per operating room hour adiologias To illustrate, assume the following data del Budgeted costs 0.000 Total estimated activity base usage 3.000 images The activity rate of $320 per radiological image is computed as follows Budgeted Activity Cost Activity Rate Total Activity Base Usage Budgeted Radiological Testing Costs Radiological Testing Activity Rate Total Estimated Images $900.000 3.000 images $120 per image The activity rates for the other activities are determined in a similar manner. These activity rates along with the patient activity base usage are used to allocate costs to patients as follows: Activity Cost Allocated to Patient Patient Activity-Base Usage X Activity Rate To illustrate, assume that Mia Wilson was a patient of the hospital. The hospital overhead Services activities) performed for Mia Wilson were as follows: Admission.... Radiological testing Operating room Pathological testing Dietary and laundry Patient (Mia Wilson) Activity Base Usage 1 admission 2 images 4 hours 1 specimen 7 days