This paper describes the application of activity-based costing (ABC) to cal­ culate unit costs for a healthcare or­ ganization in a developing country. It also describes the ways in which these calculations can provide infor­ mation for improving the efficiency and quality of healthcare services. The study was conducted from June 1, 1997 through May 31, 1998 at the MaxSalud Institute for High Q...

In the classroom, activity-based costing (ABC) looks like a great way to manage a company's limited resources. But executives who have tried to implement ABC in their organizations on any significant scale have often abandoned the attempt in the face of rising costs and employee irritation. They should try again, because a new approach sidesteps the difficulties associated with large-scale ABC ...