Ask Experts Questions for FREE Help !
Ask
    kittbishop's Avatar
    kittbishop Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 11, 2011, 05:28 PM
    Accounting
    For the past three years ABC Hospital has operated the free standing "Community Scan Clinic" [CSC]which provides scans of various types.

    For the most recent fiscal year the CSC had revenues of $600,000 but incurred $400,000 of direct costs and $300,000 of ABC Hospital allocated costs. This revenue of $600,000 and costs of $700,000 resulted in a $100,000 loss for what was intended to be a profit center. Using the same type of computation, the CSC lost about $150,000 in each of its first two years of operation.

    If we take only a SHORT-TERM perspective and consider only financial reasons, should the clinic be closed to improve ABC Hospital's net income?

Check out some similar questions!

Questions on financial accounting,cost and management accounting [ 3 Answers ]

I want different sets of questions on financial accounting,cost and management accounting for free. I am a teacher in this area

AP Journal Entires - accrual accounting and cash accounting [ 6 Answers ]

What are the journal entries for accrual accounting and cash accounting for an invoice and a payment?

List five differences between management accounting and cost accounting [ 1 Answers ]

Describe five differences between management accounting and cost accounting

View more questions Search
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.