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Management Accounting in Health Care Organizations is a textbook authored by Prof. David W. Young.  Our accounting tutors and finance tutors use this text book when tutoring subjects from health care programs. Email us or call us to start tutoring if you are using the Management Accounting in Health Care Organizations textbook.

This is a management accounting text book and not a financial accounting text book and is unique because it teaches the concepts by exposing the reader to management accounting from a healthcare point of view. Another similar book that is used in health care programs is Healthcare Finance: An Introduction to Accounting and Financial Management by Louis C. Gapenski. Both these text books are widely used in health care MBA programs and in Master in Health Care Management courses

Management Accounting in Health Care Organizations is a very useful textbook for health care management students because it contains applicable examples from a health care environment. This familiarizes students with technical jargon and ratios that are specific to the health care industry such as DRGS, patient days, revenue per bed, etc.

Management accounting is a key subject in a health care MBA program because of the complexities involved in understanding the cost of various health care services. You will see many complex situations where every possible management accounting concept can be applied. Management Accounting in Health Care Organizations brings out clearly the common accounting pitfalls managers face while making health care management decisions. Management Accounting in Health Care Organizations also discusses the uses and limitations of management accounting generally and in the health care context.

Major topics covered in Management Accounting in Health Care Organizations text book include full cost accounting, differential cost accounting, absorption costing, activity based costing (ABC), variable costing, responsibility accounting, budgeting, etc.

Management Accounting in Health Care Organizations has organised case studies with solutions. Management Accounting in Health Care Organizations also includes a glossary of selected terms and concepts.

Graduate Tutor offers a wide array of tutoring options for business executives and MBA students to develop their management accounting knowledge.  Email us or call us to start tutoring if you are using the Management Accounting in Health Care Organizations textbook.

Prof. David W. Young

David W. Young authored the popular textbook ‘Management Accounting in Health care Organizations’.   Apart from this textbook, David W. Young has authored several books including “Management Control in Nonprofit Organizations” and “A Manager’s Guide to Cost Cutting“. David W. Young has also contributed to the field of health care management largely through articles, cases and teaching notes on the topic of health policy and management.

He is a professor of the School of Management at Boston University and also teaches at Insead.  He also teaches accounting and control in Boston University.   David W. Young is also affiliated with other healthcare programs and non-profit management programs.  David W. Young’s experience in the field of accounting and healthcare is evident in his textbook ‘Management Accounting in Health care Organizations’.

Table of Contents

  • Chapter 1 Essentials Of Cost Accounting
    • Use Of Cost Information
    • Issues To Consider In Calculating Costs
    • Resource Usage: A Conceptual Framework
    • The Cost Accounting Methodology
    • Effect Of The Cost Accounting Methodology On Pricing Decisions
    • Full Cost Accounting And Third-Party Reimbursement
    • Summary Of Cost Accounting Choices
    • Appendix. The Reciprocal Method Of Cost Allocation
    • Practice Case: Mossy Bog Laboratories
  • Chapter 2 Differential Cost Accounting
    • The Nature Of Costs
    • The Differential Cost Concept
    • The Concept Of Contribution
    • Sunk Costs
    • Non-Quantitative Considerations
    • The Role Of Allocated Overhead
    • Cost-Volume-Profit Analysis
    • Special Considerations In Cost-Volume-Profit Analysis
    • Practice Case: Narcolarm, Inc.
  • Chapter 3. Absorption Costing
    • Health Care’s Second Stage Dilemma
    • A Functional Classification Of Manufacturing Costs
    • Computing Cost Of Goods Sold
    • The Overhead Rate
    • Overhead Variances
    • Managerial Uses Of Overhead Variances
    • Practice Case: Crimson Chair Company.
  • Chapter 4. Activity-Based Costing And Variable Costing
    • Activity-Based Costing
    • Cost Drivers In Other Health Care Settings
    • Absorption Costing Vs. Variable Costing
    • Practice Case Lincoln Dietary Department
  • Chapter 5. Responsibility Accounting: An Overview
    • Cost Accounting And Responsibility Accounting
    • Responsibility Accounting Systems Defined
    • The Responsibility Accounting Structure
    • The Management Control Process
    • Summary: Making Profit Centers Work
    • Practice Case: Valley Hospital
  • Chapter 6. Programming And Budgeting
    • Capital Budgeting
    • Operational Budgeting
    • Budgeting Misfits
    • Toward More Effective Budgeting
    • Appendix. The Concept Of Present Value
    • Practice Case A: Erie Hospital
    • Practice Case B: Los Reyes Hospital (A)
  • Chapter 7. Measuring And Reporting
    • The Measurement Phase
    • Measuring And Reporting Techniques
    • The Reporting Process
    • Measuring And Reporting Non-Financial Information
    • Criteria For A Good Responsibility Accounting System
    • Appendix. Developing A Spidergram
    • Practice Case: Oak Street Nursing Home
  • Chapter 8. Implementing A New Responsibility Accounting System
    • Key Characteristics Of A Good Responsibility Accounting System
    • The Responsibility Accounting Context
    • Managing The Change Effort
  • Case 8-1 The Robert Wood Johnson Medical School
  • Case 8-2 Southern State University Health System
  • Case 8-3 Hillside Hospital
  • Case 8-4 Fletcher Allen Health Care

The text book Management Accounting in Health Care Organizations is published by Jossey-Bass, A Wiely company.