Applied Study Of Activity-based Costing In Cost Management Of Operating-room In Hospitals

Nowadays, doctors are not healing arms and legs instead of costing patients’arms and legs. This phenomenon has become a hot topic of social concern. Theexisting cost control process no longer meets the needs of hospital management,which raise the question of how to apply advanced methods together with accuratedata to effectively control spending while also balancing costs, in front of all hospitalmanagers.According to the distinct features of the hospital, firstly, the author proposed theactivity-based costing method and management to implement on managing operationroom costs. Through practice, we further compared the costing differences betweentraditional method and activity-based method, particularly on operation rooms andmedical service projects, so as to find the superiority of exercising activity-basedcosting method. Lastly, we could utilize the accounting data of ABC under itsmanagement method to specify cost control measures, therefore, reducing costs.Through the research and investigation of traditional costs accounting methodwith activity-based costing and management method, the author can be confident toconclude below points. On one hand, ABC can provide more accurate information ondepartment costs and medical service. And, on the other hand, based on the data andmeasures, the hospital could strength cost control and management accordingly.