Arrange to interview the manager or controller of a local health care provider, such as a hospital, clinic, home health agency, assisted living facility, or skilled nursing home. During the interview, ask the following questions:
1. What different revenue centers does your business have? What are some types of revenue that they generate?
2. What different service centers does your business have? What are some of the services they provide?
3. Does your business assign service center costs to other responsibility centers?
What method of cost allocation is used? If some service center costs are not assigned, why not? What are some of the cost drivers used to assign service center costs?
4. Who is responsible for controlling service center costs? What measures are used to evaluate service center performance?
Prepare a summary of the manager’s or controller’s responses, and be prepared to share your findings in class.