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The administrator of Hope Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality

The administrator of Hope Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows:

1

Activities

Activity Cost

2

Patient registration

$6,100.00

3

Verifying patient information

9,400.00

4

Assigning patients

12,600.00

5

Searching/waiting for doctor

8,000.00

6

Doctor xam

4,800.00

7

Waiting for transport

17,500.00

8

Transporting patients

15,800.00

9

Verifying lab orders

14,300.00

10

Searching for equipment

7,800.00

11

Incorrect labs

11,000.00

12

Lab tests

13,200.00

13

Counting supplies

19,800.00

14

Looking for supplies

2,200.00

15

Staff training

7,500.00

16

Total

$150,000.00

The administrator of Hope Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows:

1

Activities

Activity Cost

2

Patient registration

$6,100.00

3

Verifying patient information

9,400.00

4

Assigning patients

12,600.00

5

Searching/waiting for doctor

8,000.00

6

Doctor xam

4,800.00

7

Waiting for transport

17,500.00

8

Transporting patients

15,800.00

9

Verifying lab orders

14,300.00

10

Searching for equipment

7,800.00

11

Incorrect labs

11,000.00

12

Lab tests

13,200.00

13

Counting supplies

19,800.00

14

Looking for supplies

2,200.00

15

Staff training

7,500.00

16

Total

$150,000.00

3. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

1

Quality Cost Classification

Activity Cost

Percent of Total Department Cost

2

3

4

5

6

7

Total

4. Determine the percentages of the total ER costs that are value- and non-value-added. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

1

Activity Cost

Percent of Total Department Cost

2

3

4

Total

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