Question

You have just been appointed as the new management accountant to manage the transition of the existing Royal Adelaide Hospital to the proposed new site. The hospital has a number of separate departments responsible for direct patient care, such as Accident and Emergency, Intensive Care, Neurology, and Cardiology, as well as a number of support departments such as Radiology and Patient Records. You are a little uncertain as to what your role will be in this new hospital, as consultants have been engaged to design the new management accounting systems. You thought that as a management accountant you would be responsible for developing the new systems!

Required:

Write a report to senior management explaining how you, as the management accountant, may contribute to the design and operation of the new management accounting systems for the new hospital. (600 words)

Answer 1

The report must highlists the main concern of management accouuntant and how he can make effective contibution in the organization. Management accounting offers a broad set of tools and techniques for measuring and managing many aspects.The main focus should be done on cost designing because cost information feeds into many other common management accounting practices such as targeted cost improvement plans, benchmarking, budgeting, service redesign and performance management etc. Poor-quality cost data- whetheer in terms of unexplained sources of variance or inappropriate disguising of variance through excessive reliance on averages are threats to the delieveryy of efficient and effective health care. The efforts will help to involve implementing low-cost information technology designed to improve efficiency and effectiveness in operating rooms.