Overview
You are writing a business style report so you should have:
1. Table of contents,
2. An Introduction or Executive Summary,
3. Detailed Analysis Findings and Comparison of the results (Use Headings and Subheadings to separate the Methods for example)
3.1 Traditional Costing;
Explain what this is and how overheads are allocated under Traditional Costing and anything you find relevant.
3.1.1 Option 1;
Explain how the overheads are allocated under this option and analyse your results (costs, profit and profit margin for each operation). Include a summary table and a note underneath the table stating the Appendix number that includes the detailed calculations.
3.1.2 Option 2
Explain how the overheads are allocated under this option and analyse your results (costs, profit and profit margin for each operation). Include a summary table and a note underneath the table stating the Appendix number that includes the detailed calculations.
Compare your results for this option with the results for Option 1 and comment on the accuracy of each method. Explain why the results differ from the previous method
3.2 Activity Based Costing- Option 3
Explain what is ABC and how overheads are allocated under ABC and anything else you find appropriate.
Analyse the ABC results (costs, profit and profit margin for each operation). Include a summary table and a note underneath the table stating the Appendix number that includes the detailed calculations.
Compare your results for this option with the results for Option 1 and Option 2 and comment on the accuracy of this method versus the previous ones. Explain why the results differ from the previous methods.
4. Advantages and Disadvantages for the clinic to change to ABC ( You need to use Academic Literature here i.e. journal Articles). Do not forget to apply this to the clinic. Do not write a list of bullet points without applying to the scenario in the question.
1.
2. A recommendation( Should the clinic implement ABC? Why and Why not? How can you make a recommendation you need to look at the environment in which the clinic operates, level of competition (is it high or low?)look at the clinic costs (are they all driven by surgeon hours?); look at the number of operations that the hospital offers (one or more operations(product diversity)), look at the costs calculated under both methods (are they the same or very different?)
3. Additional Recommendations refers to what needs to be done for each of the surgeries based on your calculations (should the clinic carry on offering all the operations, should the prices and costs remain as they are, what can be done to improve the profitability of each operation and the business as a whole) and any other valid suggestions that you can come up with.
4. Pricing
7.1. Hair Implants Pricing
Here you must discuss the feasibility of the plan and the price that you calculated given the capacity of the clinic and the market price vs the Q and P that you calculated above. Detailed calculations should be placed in Appendix and you should point the reader to where in the appendix those can be found them.
1.2. Alternative Pricing Strategy
You must discuss an alternative pricing strategy applying them to the scenario in which the clinic operates, the type of operation, growth in demand, lifecycle, etc.
1. Conclusion
2. References APE
3. Appendixes
4. ABC Calculations Analysis and Recommendations 1000 words
5. pricing 300 words Here you should have headings and sub-headings for each method and show detailed calculations adequately labelled. You should also include a section for the pricing calculations.