When decisions are made on the basis of reported product cost, even modest distortions in product cost may create significant distortions in decision-making. But costing systems are unlikely to be error-free. On the other hand, firms' budgets to enhance costing accuracy are typically constrained, and should be used where they are most effective. There is little guidance available, however, on h...

Purpose: Health systems worldwide have sustainability concerns due to rising demand and healthcare services costs. Value-based (VBHC) may solve all challenges by improving health outcomes. Improving outcomes is the only effective approach cutting expenses. Cost-assessment methodologies that can give high-quality cost information are required implement value-based initiatives. Time-driven activi...

The need for physician cost accounting data has been prompted by the emergence of capitation and risk-sharing among hospitals and physician group practices. It is no longer sufficient to know the costs of hospital services only: accurate cost data must be developed for the continuum of care. In initiating a costing effort, physician practices can benefit from some of the cost accounting lessons...