UNIT COST CALCULATION USING ACTIVITY-BASED COSTING (ABC) METHOD FOR INPATIENT PRICE AT BUNGSU GENERAL HOSPITAL
Overhead expenses of hospital rises since cost pressures and competition increased. Thus, overhead should be captured and correctly classified to the relevant final cost centers which eventually leads to a higher level of cost efficiency and quality of care. Cost management’s crucial to hospitals si...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/64482 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Overhead expenses of hospital rises since cost pressures and competition increased. Thus, overhead should be captured and correctly classified to the relevant final cost centers which eventually leads to a higher level of cost efficiency and quality of care. Cost management’s crucial to hospitals since it functions as the fundament in order to propose new price patterns and measurement of cost efficiency and quality of care. All this time, the hospital in determining its cost price only uses a traditional cost system . Since hospitals generate product or service variations , traditional cost accounting is not acceptable to be employed for the hospitals owning more than one product or service because this method can cause the imposition of specified inpatient services charges to be cheaper (undercosting) or more expensive (overcosting). Bungsu General Hospital in determining the price of inpatient services still use traditional methods. In this research, Activity-Based Costing (ABC) used in order to cope with the limitations that appear in traditional cost accounting (TCS). The ABC Method was applied to calculate unit cost for inpatient service from 2017-2019. The methodology used in this research is quantitative descriptive to describe and calculate unit cost inpatient care at Bungsu General Hospital Bandung. In conducting the analysis, the data used in this study are primary and secondary data. Primary data in this research are direct information through direct interview with management. Secondary data is obtained from financial report. The result showed that price set by Bungsu General Hospital in 2017, 2018, and 2019 were undercosting for VIP, Class I, Class II, and Class III, it also showed that ABC method provides more accurate calculation results because overhead costs of each product charged to many cost drivers. Based on these results, the proposed recommendations are Bungsu General Hospital needs to review its inpatient service price by considering the application of ABC system to find the accurate price. However, Bungsu General Hospital manager needs to consider the limitation and benefit in of the ABC method |
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