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A hospital wishes to establish a performance measurement for its ‘quality of care’, and in particular its adherence to appointment times for patients receiving medical checks. Which one of the following performance measurements would be the most suitable for this purpose?
A Average length of appointments
B Average number of appointments per day
C Average number of days from making an appointment to the appointment date
D Average waiting time at the hospital
(Sir in this question why option A is not correct?…because our CSF is the quality of care and so average length of appointment means doctor is taking out more time to see every patient and hence doing a quality check up?)Which one of the following figures would be the most suitable for divisional profit for the purpose of performance measurement?
A Gross profit
B Profit before interest and tax
C Profit before tax
D Profit after tax
(can it not be option C?)Where a perfect external market price exists and unit variable costs and unit selling prices are constant, the opportunity cost of transfer will be external market price or external market price less savings in selling costs
(In this statement do they mean opporunity cost and lost contribution? i did not understand the last words of the statement)First question:
There are many things that affect quality of car, but the questions specifically asks about ‘adherence to appointment times’. The length of the appointments has nothing to do with how well they stick to the appointment time.
Second question:
It should be profit before interest and tax, because the division will not control either.
Third question:
The opportunity cost is the lost contribution (have you watched my free lectures on this?)
yes sir I have watched your lecture and it was very well delivered. Thank you for your efforts to help us
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