Standard cost systems lead to efficiency and profitability.
Today's healthcare managers are finding that business methods such as product line planning, productivity monitoring, and advance cost measurement are necessary to operate an efficient and profitable organization. But to use these methods, managers need information about costs. Specifically, they need costs standards to determine how efficiently and profitably their institutions are operating. To develop a standard cost system, managers must be aware of the kinds of standards used, the motivational effect of standards on employee productivity, the steps necessary for effective implementation and maintenance, and the advantages and disadvantages of a standard cost system.
D000066:Accounting / Q000379:methods*; D003365:Costs and Cost Analysis; D003953:Diagnosis-Related Groups; D004526:Efficiency; D005376:Financial Management; D005377:Financial Management, Hospital; D014481:United States