Refer to the case facts contained in the St George Hospital case (linked here: https://drive.google.com/file/d/1RZI2Gel9pcXkrVYOt4bfrxkzM082ML2Z/view?usp=sharing . Provided below is a partially completed flexible budget [building on the static budget in Table 2 of the case] for the Orthopedic Unit at St George Hospital.

A) i) Demonstrate your understanding of flexible budgeting by calculating the numbers applicable for the highlighted cells (labelled a, b and c above) for the Orthopedic Unit of St George Hospital. 5 marks

ii) How might St George Hospital make best use of the flexible budget? Provide ONE clear use. 3 marks

B) Using the St George Hospital case facts, identify TWO likely key influences (evident from the case) on the achievement of budget targets for the Hospital. 4 marks

C) Vera was very pleased when she was sent on her first professional development accounting seminar. She attended a number of presentations relating to time-driven-activity-based costing (TDABC) and spent considerable time reading an article by Kaplan & Porter (2011) titled How to solve the cost crisis in healthcare. She now wondered if the Orthopedic Unit would be a suitable setting for the application of TDABC.

Provide ONE argument in support of the use of TDABC in the Orthopedic unit; and ONE argument against the use of TDABC in the Orthopedic unit. Your response must relate to the Orthopedic Unit and provide sufficient detail to convey each argument. 6 marks.

D) Vera was starting to grow in confidence in her role. The senior staff of the Orthopedic Unit and the Hospital in general were very impressed with her enthusiasm and ability to tap into contemporary management accounting ideas and practices. Drawing on our work across the subject this semester, suggest ONE additional practice Vera could seek to introduce within the Orthopedic Unit or Hospital generally, that could enhance performance from both an accounting and quality of care perspective. Briefly comment on how your suggestion would benefit performance from these two perspectives. 4 marks