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IB8010 Accounting And Financial Management

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Question:

Scenario

As a management accountant with the University Hospital Westhampton NHS Foundation Trust (UHW), you have been asked to provide a board paper on the report produced by CIMA  titled ‘Costing in the National Health Service – from reporting to managing’. This report can be found at:-

http://www.cimaglobal.com/Documents/Thought_leadership_docs/R226%20Costing%20in%20the%20National%20UPDATED%20%20(PDF).pdf

The report identifies that the NHS must make major cost savings in coming years. This report argues that ABC analysis of cost behaviour is a tool that offers many attractions, outweighing the cost of undertaking it.

The board paper is intended for the monthly pack that is submitted to the Board of Directors of the Trust. The Board comprises of both Executive Directors and Non-Executive Directors (NED’s) and the vast majority do not have accounting expertise, as they have either a specialism in HR, Procurement or Medical Operational management. As such your paper must written where you clearly explain accounting terminology, so assume no prior knowledge of the eventual reader.

Task

Your paper must:-

  1. Proposeto the Board the key findings in the report
  2. Explainthe concept of ABC.
  3. Provide the board with a critical appraisalon the implementation of the findings at UHW, where they currently do not have ABC
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