Product Costing Vs. Standard Costing In Health Care

Running Head : PRODUCT court VS STANDARD COSTING Alternatives for identifying a healthcare service cost are harvest-festival be and stock costStudent NameInstitutionProduct cost and standard costProduct cost is a method of finding cost incurred by the organization by analyzing the actual resources consumed by a particular patient or service . It squeeze out either be process be is where the patient is give job costing where examines the specific resources consumed by the patient in great detail and hybrid costing this one combines both job and process costing (Bartlett Jones 2006 . standardized costing gives the estimates of what costs should be charged to different types of patients it can either use historical data , comparing the cost incurredIn both cases the major aim of the organization is to maximize the profitIn both cases the production costs are passed to patient . Product costing is more than detailed and accurate this is because the records are kept as the patient is being treated and everything is recorded in a score card .

While in standard costing it is less accurate and less detailed because the information is given being cornerstoned from last data (Dieter , 2000In product costing the information is more reliable and can be employ to make decisions since they are responsive while in standard costing the information cannot be trustable because they are made of estimations and wherefore they cannot be relied upon in making organizations decisionsProduct costing method is more applicable like when a surgery is being carried upon an outpatient . This is because to each one outpatient will take different continuance to be operated and too he will use different resources . Standard costing is appropriate when accepting tests like blood sugar , urine tests , and relieve oneself test among others this is because the same materials will be used to conduct the exercise and even the results will take the same duration (Bartlett Jones 2006ReferenceBartlett Jones (2006 . Cost accounting for health care organization capital of Japan : Bartlett publishersDieter , B (2000 . Developing a solid base for cost accounting system Health care fiscal management . New York : McGrawPAGEPAGE 1 Product costing versus standard costing...If you want to get a full essay, order it on our website: Orderessay

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