Activity based costing model in laboratory of care hospital

摘要

Hospitals in Hyderabad feel pressure from customers and regulators to provide high quality service at a lowest possible cost for them. In this study, we investigate whether the hospitals enjoy incremental benefits with the adoption of activity based costing beyond what is being provided by the traditional costing system. The study explores the relationship between activity based costing (ABC) and the measures of hospital performance-profitability revenue and cost containment in a corporate hospital-care hospital in Hyderabad, India. A comparative analysis is attempted to check the benefits offered by the ABC in comparison to traditional costing system.