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Words Count: this Question 5 at least 5000 words Case study : accurate cost management practices, IHH Healthcare aims to implement Activity-Based Costing (ABC) to

Words Count: this Question 5 at least 5000 words

Case study :

accurate cost management practices, IHH Healthcare aims to implement Activity-Based Costing (ABC) to enhance its cost allocation and decision-making processes. This case study explores the implementation of ABC in IHH Healthcare, highlighting the benefits and challenges encountered throughout the process.

IHH Healthcare operates in a dynamic and competitive healthcare industry, providing a wide range of medical services, including inpatient care, outpatient consultations, diagnostic tests, surgeries, and specialized treatments. With the goal of improving cost management, IHH Healthcare acknowledges the limitations of its existing traditional costing system, which relies on broad cost drivers and arbitrary cost allocations.

Traditional Costing System Limitations: The existing costing system in IHH Healthcare lacks the granularity needed to accurately determine the costs associated with different healthcare services. Costs are often allocated based on broad factors, such as patient volume or revenue, which can lead to distortions and misrepresentation of the actual resource consumption. This limitation hampers the organization's ability to make informed decisions regarding service pricing, resource allocation, and profitability analysis.

Activity-Based Costing Implementation: To address the limitations of the traditional costing system, IHH Healthcare decides to implement Activity-Based Costing (ABC). ABC is a methodology that identifies and assigns costs to specific activities based on their resource consumption. By analyzing the cost drivers and tracing costs to individual activities, ABC provides a more accurate and detailed picture of the costs associated with each service.

Identifying Cost Drivers: IHH Healthcare conducts a comprehensive analysis of its activities to identify the primary cost drivers within each department. This includes examining factors such as patient visits, procedures, laboratory tests, surgical interventions, and other services provided. By understanding the key cost drivers, IHH Healthcare gains insights into the activities that consume the most resources and contribute significantly to the overall costs of healthcare delivery.

Allocating Costs: Using the data collected, IHH Healthcare allocates costs to individual services or patients based on the intensity and complexity of the activities performed. For example, costs may be allocated based on direct labor hours, machine usage, nursing hours, or specific equipment utilized during procedures. This level of granularity allows for more accurate and fair allocation of costs, enabling IHH Healthcare to better understand the true costs associated with each service or patient.

Benefits and Challenges of ABC Implementation: The implementation of ABC in IHH Healthcare offers several benefits. First, it provides a clearer understanding of the costs associated with each service, enabling more informed pricing decisions. Second, it facilitates better resource allocation by identifying activities that consume excessive resources and areas where cost reduction efforts can be focused. Third, ABC enhances the organization's ability to conduct profitability analysis and strategic planning.

However, the implementation of ABC does pose certain challenges. Collecting and analyzing the data required for ABC can be time-consuming and resource-intensive. Ensuring the accuracy and reliability of data is essential to the success of ABC. Additionally, the implementation process may require significant changes in the organization's cost accounting systems, as well as efforts to educate and gain buy-in from employees who may be accustomed to the traditional costing approach.

Applying the ABC methodology to a specific department or service within IHH Healthcare, such as the cardiology department or outpatient consultations, the organization gains valuable insights. The analysis reveals the true costs associated with each activity and allows for a more accurate understanding of resource consumption. IHH Healthcare can now make more informed decisions regarding service pricing, resource allocation, and process improvement initiatives.

Based on the case study, answer the folliowing:

Question 5 (CLO1,2,3):

Words Count: Question 5 at least 5000 words

Working in a group of 5 (or less than 5), critically write a research paper related to accounting, finance, economy, business or management. The research paper should contain the following:

Abstract (200 words), Keywords and JEL Code
Introduction (issue, problem statement, research questions, research objectives)
Literature Review (at least 20 citations, underlying theory, conceptual framework, hypothesis)
Methodology (research design, qualitative/ quantitative, population, sampling, regression)
Results and Discussion (Analysis of questionnaire/ interview, result discussion, comparision analysis with previous studies, hypothesis testing)
Conclusion (Recap of the research, theoretical/practical/managerial implications, limitations, recommendations for future studies)

Note: Additional 50 marks will be awarded upon succcessful publication in any journal indexed in Google Scholar.

Topics for suggestions (each group should have different topics):

1. The Impact of Digital Transformation on Financial Reporting and Analysis in the Accounting Industry.
2. The Role of Corporate Governance in Enhancing Financial Performance and Investor Confidence.
3. Financial Risk Management Strategies in the Banking Sector: A Comparative Analysis.
4. The Relationship Between Financial Leverage and Firm Profitability: Evidence from a Specific Industry.
5. The Effect of Tax Policy Changes on Business Investment and Economic Growth.
6. The Role of Artificial Intelligence and Machine Learning in Financial Forecasting and Decision-Making.
7. Exploring the Implications of Environmental, Social, and Governance (ESG) Factors on Firm Performance and Valuation.
8. The Impact of International Financial Reporting Standards (IFRS) Adoption on Financial Reporting Quality and Comparability.
9. The Effectiveness of Corporate Social Responsibility (CSR) Initiatives in Enhancing Brand Reputation and Customer Loyalty.
10. The Role of Financial Technology (Fintech) in Shaping the Future of Financial Services and Payments.
11. Evaluating the Efficiency of Capital Markets in Allocating Financial Resources.
12. The Impact of Cross-Cultural Management on International Business Expansion.
13. The Role of Leadership Styles in Organizational Performance and Employee Satisfaction.
14. Examining the Relationship Between Employee Engagement and Organizational Productivity. The Integration of ESG Factors in Fintech Investment Decision-Making: Opportunities and Challenges.
15. The Role of Fintech in Promoting Sustainable Finance and Responsible Investing.
16. Blockchain Technology and Supply Chain Traceability: Enhancing ESG Transparency and Accountability.
17. The Potential of Blockchain-Based Smart Contracts in Facilitating ESG Compliance and Reporting.
18. Exploring the Role of Fintech in ESG Data Collection and Analysis for Investment Decision-Making.
19. The Use of Blockchain in Impact Investing: Assessing the Impact Measurement and Reporting Frameworks.
20. The Application of Blockchain Technology in ESG Certification and Verification Processes.
21. Fintech Solutions for Green Finance: Leveraging Blockchain and AI in Financing Renewable Energy Projects.
22. The Role of Fintech and Blockchain in Carbon Credit Trading and Emissions Reduction Initiatives.
23. Evaluating the Impact of Fintech and Blockchain on Financial Inclusion and ESG Goals in Developing Economies.
24. The Effect of Corporate Entrepreneurship on Firm Innovation and Competitive Advantage.

(50 Marks)

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