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About the Book

About the Book. Code Blue, McDermott & Stocks Accounting Version. Learning Objectives. Understand the format and purpose of a textbook/novel Introduction to service industry accounting Introduction to the healthcare industry Review of employment opportunities. Introduction to Text.

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About the Book

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  1. About the Book Code Blue, McDermott & Stocks Accounting Version

  2. Learning Objectives • Understand the format and purpose of a textbook/novel • Introduction to service industry accounting • Introduction to the healthcare industry • Review of employment opportunities

  3. Introduction to Text • Format is textbook/novel • Novel section (pages 15 - 171) provide background on industry necessary in understanding service industry accounting • Supplement section (pages 172 - 253) provide technical material on design of service industry cost accounting

  4. Introduction to Text • Format is textbook/novel • Learning in context • Material is more interesting and therefore easier to understand when presented in a real-world framework • People understand theory when attached to a story that illustrates the principle

  5. Introduction to Text • Exercises and problems are found on McDermott’s web page.

  6. Introduction to Text • Medical, Economic and Accounting Terms used in Text --page 254 • Abbreviations used in the text--page 262 • Cast of characters--page 13

  7. Why Service Industry Cost Accounting? • In 1954 the number of jobs in service industries passed the number in manufacturing • Services industries presently constitute 75% of the economy

  8. Why Service Industry Cost Accounting? • Price competition is driving many service industries to costing systems • In recent years, hospitals alone have spent in excess of $4 billion designing and implementing cost accounting • Service industry cost accounting is different from the traditional manufacturing cost accounting

  9. Why illustrate with a hospital cost accounting case study? • Hospital cost accounting is relatively new and addresses issues such as quality, ABC costing etc. • Hospital cost accounting is the most comprehensive of the service industry cost accounting systems • Principles learned can be applied to other service industries

  10. Why illustrate with a hospital cost accounting case study? • The health care industry provides many opportunities for accountants • It is currently the largest industry in the U.S. • It is bigger than the second and third industries combined (Education and Defense)

  11. Employment Opportunities • Consulting--one of the fastest growing consulting fields in the country

  12. Employment Opportunities • Financial Accounting--prospective reimbursement has made healthcare one of the most complex areas in revenue recognition • Cost Accounting--developed in the early 1980s with the introduction of prospective reimbursement • New and exciting job opportunities

  13. Hospitals are big business • It is not unusual for a regional medical center to have in excess of • $250 million annual operating budget • 2,000 employees • 60+ revenue and cost centers

  14. The End

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