Accounting-Course Syllabus ACC561

Course SyllabusACC561Accounting in HealthcareCourse Start Date: 1/11/2011Course End Date: 2/21/2011Please print a copy of this syllabus for handy reference. Whenever there is a question about what assignments are due, please remember this syllabus isconsidered the ruling document. CopyrightCopyright ©2009 by University of Phoenix. All rights reserved. University of Phoenix© is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft©, Windows©, and Windows NT© are registered trademarks of Microsoft Corporation in the United States and/or othercountries. All other company and product names are trademarks or registered trademarks of their respective companies. Use ofthese marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix© editorial standards and practices. Facilitator InformationMichael Marshallthedane@email. phoenix. edu (University of Phoenix)mstangmike@cox. net (Personal)918-902-4310 (CST)Facilitator AvailabilityI am available from 9 a. m. -9 p. m. Central Time on most days, but I attempt to reserve Sunday for myfamily. During the week, I am online most of the time during that 4 p. m. -12 a. m. time frame. On Saturdays, I tend to be online in the morning only. If these times are not convenient for you, please letme know. I will be happy to accommodate your schedule, if possible. I provide you with these times tomake it easier to communicate with me, and not to limit our contact. I want you to know that, should you need to contact me outside these time frames, you should nothesitate to do so. For emergencies, when you are not able to gain access to messages on the Online Learning System(OLS), please send a message to my personal email address. In the event a third party needs to contactme, please direct them to my contact information listed under &quot,facilitator information. &quot, No third partyshould use your login credentials to gain access to the classroom. Where to Go to ClassMain: This is the main forum for the class and is where discussion is conducted. It has read-and-writeaccess for everyone. Chat-Room: This is a read-and-write access forum. It is designed as a place to discuss issues not relatedto the course content. This is the forum to which we will send our bios. Course-Materials: This is a read-only forum, which means you can read messages here but cannot sendany. This is where I will post the course syllabus and materials. Learning-Team-A, B, C, D, E and F: These six Learning Team forums will be used as workrooms forthe learning teams. You will be assigned to one of these learning teams. Individual Forum: You will see one forum with your name on it. This is a private forum, shared only byyou and me, the facilitator. Your classmates will not have access to this forum. This is where you will postyour individual assignments, and where I will post your feedback. You can also ask questions here. However, if you have general questions about instructions of assignments, please post those in the Mainforum, since other students may benefit by that exchange as well. PoliciesFor class policies, please see the Policies link on the left side of the Materials page for the course oneCampus. Faculty and students/learners will be held responsible for understanding and adhering to allpolicies contained within that link. University policies are subject to change so please be sure to readthem at the beginning of each class as it may have changed since your last class. Policies may be slightlydifferent depending on the modality in which you attend class. If you have recently changed modalities itis important you read the policies governing your current class modality. Late AssignmentsLate assignments receive a 10% deduction for each day they are late if assignments are not posted by11: 59 p. m. M. S. T. on the day they are due. Assignments more than 1 day late will not be accepted. Technological issues are not considered valid grounds for late assignment submission. In the event of aUniversity of Phoenix server outage, students should submit assignments through email to the instructorand post to the individual forum when systems are restored. Unless an Incomplete grade has beengranted, learner assignments submitted after the last day of class will not be accepted. Learning TeamsUniversity of Phoenix students are expected to work effectively in diverse groups and teams to achievetasks. They must collaborate and function well in team settings as both leaders and followers. Theyshould respect human diversity and behave in a tolerant manner toward colleagues and peers. If youexperience difficulties working with your team, you are expected to resolve them within the team ifpossible. However, please feel free to contact me for guidance if you have concerns in this area. BecauseLearning Team projects are outcome-based, all members of your Learning Team will generally earn thesame grade for Learning Team projects. However, I reserve the right to report different grades fordifferent Learning Team members if I see a substantial imbalance in individual contribution. LearningTeams should provide a brief summary of any communication held outside the forum. Therefore, if youhold conference calls, work in a real-time chat room, or get together outside the OLS (Online LearningSystem) environment in another way, please post a log, transcript, or summary in the Learning Teamforum. Further, do not use any of these supplementary communication tools unless everyone on yourLearning Team agrees to the method and to the schedule. If you have any questions, please contact me. Several of the assignments in this class will be completed in Learning Teams of three to five students. Iwill set up these teams by the end of Week 1. If you have any requests for teammates, please let meknow by Thursday of the first week via your Individual Forum. Learning Team Charters and PeerEvaluation forms are required. Please see the instructions in the weekly sections for more information. AllLearning Team assignments must be submitted to the Learning Team forum. It is expected that you will actively participate with your learning team and contribute to the teamdiscussions by a) contributing original work that is accepted and used by the team with proof of originalityb) participating in the project from assignment organizing through meaningful final review of the teamproject for submission, and c) ensuring to your team that your contributions are your original work andproperly quoted, cited, and referenced. Technical SupportTechnical Support is available 24 hours a day, 365 days a year. Call 1-877-832-4867, or use the e-mailsupport form. Answers to the most common issues are found in the Knowledge Base by clicking Help, found at the topof every student Web site. FeedbackEach week, I will provide grades or scores and comments on assignments within 6 days of when theywere submitted. I will send feedback to your Individual forum. After I send feedback each week, I willpost a notification in the Main forum. Grading FormulaPointsGrade95+A90-94A-87-89B+84-86B80-83B-77-79C+74-76C70-73C-67-69D+64-66D60-63D-&lt,59FCourse DescriptionSee eCampus. Course Topics &amp, ObjectivesSee eCampus. Course MaterialsSee eCampus. Point Values for Course AssignmentsASSIGNMENTSPointsIndividual (70%)(Week 1) Individual Assignment: Happy HospitalScenario10(Week 2) Only Learning Team Assignment this week. 0(Week 3) Individual Assignment: Break-Even Analysis15(Week 4) Individual Assignment: Preparing the Budget0(Week 5) Individual Assignment: Cost AllocationAssignment10(Week 6) Only Learning Team Assignment this week. 0Participation/Discussion Questions/Weekly Summaries (3points per week)18Learning Team (30%)(Week 1) Only Individual Assignment this week. 0(Week 2) Learning Team Assignment: FinancialStatement Analysis12(Week 3) Only Individual Assignment this week. 0(Week 4) Learning Team: Preparing the Budget15(Week 5) Only Individual Assignment this week. 0(Week 6) Learning Team Assignment: Clinic Performance20Evaluation and PresentationTotal100Week OneDecision Making in the Healthcare Environment•••Explain the role of budgets and performance reports of management in the health care industry. Evaluate the role of ethics in accounting decision making. Evaluate relevant accounting information for business decision making in the health care industry. Course Assignments1. Readings••••••Read Ch. 1 of Accounting Fundamentals. Read Ch. 2 Accounting Fundamentals. Read Ch. 17 of Accounting Fundamentals. Read Ch. 1 of Essentials of Cost Accounting. Read Ch. 2 of Essentials of Cost Accounting. Read this week’s Electronic Reserve Readings. 2. Discussion Questions••Complete Exercise 1 on p. 10 (Ch. 1) of Essentials of Cost Accounting. Complete Exercise 6 on p. 10 (Ch. 1) of Essentials of Cost Accounting. 3. Individual Assignment: Happy Hospital Scenario•Read the Happy Hospital Scenario in Ch. 17 of Accounting Fundamentals. •Write a 700-word paper explaining the following: oHow could Happy Hospital use budgets and performance reports in the decision-makingprocess?oHow must ethics influence their accounting decisions?oWhat accounting information is most relevant for Happy Hospital to consider when makingdecisions?•Include citations—one dealing with ethics in accounting—and at least two references other thanthe texts in your paper where appropriate. •Format your paper according to APA standards. •Post your assignment as a Microsoft® Word attachment. Weekly RemindersWeekly SummariesWeekly summaries will be required in this course and counted as class participation. Discussion QuestionsDiscussion question responses will count towards the class participation requirement. ParticipationAll Week: Remember to participate in the class discussions 4 out of 7 days during the week. Summary of Week 1 DeliverablesAssignmentDQ: 1 Complete Exercise 1 on p. 10(Ch. 1) of Essentials of CostAccounting. Individual orLearningTeamLocationDueIndividualWeek 1 DiscussionQuestions ThreadWednesdayIndividualWeek 1 DiscussionQuestions ThreadSundayIndividual Assignment: Happy HospitalScenarioIndividualIndividual ForumMondayWeekly SummaryIndividualWeekly EvaluationsThreadMondayLearning Team CharterTeamTeam Leader’sIndividual ForumMondayDQ: 2 Complete Exercise 6 on p. 10 (Ch. 1) of Essentials of Cost Accounting. Week TwoFinancial Statements•••Apply the concepts, techniques, and conventions of basic financial accounting to a health careorganization. Identify how measurement conventions in the health care industry affect financial reporting. Determine the relationships between the elements of the financial statements. Course Assignments1. Readings•••••••Read Ch. 3 of Accounting Fundamentals. Read Ch. 4 of Accounting Fundamentals. Read Ch. 12 of Essentials of Cost Accounting. Read Ch. 17 of Essentials of Cost Accounting. Review the International Accounting Standards Board (IASB) Web site: http: //www. iasb. org/Home. htmReview the American Institute of Certified Public Accountants (AICPA) Web site: http: //www. aicpa. orgReview the Financial Accounting Standards Board (FASB) Web site: http: //www. fasb. org/2. Discussion Questions••Complete Exercise 4 on p. 281 (Ch. 12) of Essentials of Cost Accounting. Complete Exercise 2 on p. 373 (Ch. 17) of Essentials of Cost Accounting. 3. Learning Team Assignment: Financial Statement Analysis• Choose two health organizations as a Learning Team. One company may be Happy Hospitalfrom Ch. 17 of Accounting Fundamentals. Compute the quick and current liquidity ratios, theDuPont ratio, profit margin, asset utilization, and financial leverage of each of the twocompanies. • Write a 1,050-word paper discussing how differences in the industries and differentmeasurement conventions affect presentations. If one of the companies uses the cash basisof accounting, how would that differ from the accrual basis?• Address the following in your paper: ooHow might changing one of the financial statements affect the other financial statements?o••In what ways do the elements of the financial statements interact with one another?Why is it essential to understand the relationship between the financial statements?Format your paper according to APA standards. Post your assignment as a Microsoft® Word attachment. Weekly RemindersWeekly SummariesWeekly summaries will be required in this course and counted as class participation. Discussion QuestionsDiscussion question responses will count towards the class participation requirement. ParticipationAll Week: Remember to participate in the class discussions 4 out of 7 days during the week. Summary of Week 2 DeliverablesAssignmentIndividual orLearningTeamLocationDueDQ: 1 Complete Exercise 4 on p. 281 (Ch. 12) of Essentials of Cost Accounting. IndividualWeek 2 DiscussionQuestions ThreadWednesdayDQ: 2 Complete Exercise 2 on p. 373 (Ch. 17) of Essentials of Cost Accounting. IndividualWeek 2 DiscussionQuestions ThreadSundayLearning Team Assignment: FinancialStatement AnalysisLearningTeamTeam Leader’sIndividual ForumMondayWeekly SummaryIndividualWeekly EvaluationsThreadMondayWeek ThreeCost Behavior••••Evaluate how cost behavior affects selection of cost drivers and health care’s managementdecisions. Analyze the cost-volume-profit relationships to predict effects of changes in sales or costs,including the breakeven sales volume. Compare and contrast the different methods of measuring cost functions in the health careindustry. Explain how cost accounting systems are used in the health care industry to determine the cost ofa product, service, customer, or other cost objective. Course Assignments4. Readings•••••Read Ch. 6 of Accounting Fundamentals. Read Ch. 7 of Accounting Fundamentals. Read Ch. 4 of Essentials of Cost Accounting. Read Ch. 5 of Essentials of Cost Accounting. Read Ch. 6 of Essentials of Cost Accounting. 5. Discussion Questions••Complete Exercise 4 on p. 94 (Ch. 5) of Essentials of Cost Accounting. Complete Exercise 1 on p. 113 (Ch. 6) of Essentials of Cost Accounting. 6. Individual Assignment: Break-Even AnalysisThe Beach Street office of Getwell Clinics specializes in the treatment of three types of patients: DRG M, DRG J, and DRG P. The operating statistics for patient care of these three DRGs for lastyear are shown below. They include patient volume proportions, average charges, averagevariable costs, and the amount of specific fixed costs assignable to each DRG. In addition, thesatellite office had joint fixed costs last year of $240,000. Getwell Clinics Operating StatisticsDRGMJPProportion50%30%20%100%Charge$1,7002,600900VariableCost$1,0001,200600Joint Fixed CostsFixed Cost$500,000280,000110,000830,000$1,720,000Doctor Barkley, newly appointed director of the satellite office, has requested that you determinethe breakeven points for each DRG. Dr. Barkley also wants to know which DRG would be themost profitable to promote in growing the practice. A recent time study showed that proceduresinvolved in each DRG took the following time: DRG M, 2 hours, DRG J, 5 hours, and DRG P, 1hour. •Prepare a formal and comprehensive response to Dr. Barkley that demonstrates understandingof the Week Three objectives. oExplain the relevance of DRG analysis as a tool that drives costs and affectsmanagement decisions in healthcare. oCalculate the breakeven points, in numbers of treatments, for each type of DRG, usingthe weighted average contribution margin approach. oPropose your recommendations that answer the following questions: •Which DRG must be promoted in an advertising program if the office has excesscapacity? Explain why. •Which DRG must be promoted if the office is almost at maximum capacity in terms ofavailable hours? Explain why. •What rationale may be used to support the use of DRGs as an approach to allocatingcosts?Weekly RemindersWeekly SummariesWeekly summaries will be required in this course and counted as class participation. Discussion QuestionsDiscussion question responses will count towards the class participation requirement. ParticipationAll Week: Remember to participate in the class discussions 4 out of 7 days during the week. Summary of Week 3 DeliverablesAssignmentIndividualorLearningTeamLocationDueDQ: 1 Complete Exercise 4 on p. 94 (Ch. 5)of Essentials of Cost Accounting. IndividualWeek 3 DiscussionQuestions ThreadWednesdayDQ: 2 Complete Exercise 1 on p. 113 (Ch. 6) of Essentials of Cost Accounting. IndividualWeek 3 DiscussionQuestions ThreadSundayBreak-Even AnalysisIndividualIndividual ForumMondayWeekly SummaryIndividualWeekly EvaluationsThreadMondayWeek FourBudgets•••Examine the budgeting process for capital, operational, and facility funding. Explain the benchmarking process and how it is used to make decisions in the health careindustry. Analyze budget performance, corrective actions, and evaluate the impact on health care. Course Assignments7. Readings••••Read Ch. 9 of Accounting Fundamentals. Read Ch. 10 of Accounting Fundamentals. Read Ch. 13 of Accounting Fundamentals. Read Ch. 8 of Essentials of Cost Accounting. 8. Discussion Questions••Complete Exercise 10 on p. 189 (Ch. 8) of Essentials of Cost Accounting. Complete Exercise 15 on p. 189 (Ch. 8) of Essentials of Cost Accounting. 9. Team Assignment: Preparing the BudgetAssume you are the financial director of a clinic that is a part of an organization named GetwellClinics Incorporated. Your clinic—named after you—serves a suburban community with apopulation of about 24,000, of which 25% are expected to become patients of the clinic. Eachpatient is expected to average five visits per year. Assume that visits occur evenly throughout theyear. The average physician’s salary is $11,000 per month. The current practice is fee-for-serviceand includes Medicare and nonMedicare patients. The clinic has been approached by severalHMOs to provide services to their enrollees, but the board of directors has decided to deferparticipation until year 2015. After adjustments and allowances, average charges are $50 per visit. You believe that patientreceivables are too high. You expect to improve collections, resulting in a balance of $220,000patient receivables at the end of the year. The flexible budget for operating costs for the clinic is as follows: Operating CostsNurses’ salariesAdministrative and technical salariesMedical suppliesRentService bureau for medical and financial recordsOther operating expensesVariableExpensesper Visit00$6. 000$1. 00$3. 00FixedExpenses perMonth$18,000$19,0000$4,000$2,000$6,000Planned purchases of medical supplies are $16,000 per month. Supplies are paid in the monthfollowing purchase. Service bureau expenses are paid in the month following service. All otherexpenses are paid in the month of incurrence. During year 2015, your clinic plans to purchase $80,000 worth of equipment, which willdepreciate on the straight-line basis over 5 years. A $75,000 line of credit has been arranged atthe bank if needed. Assume a desired minimum cash balance of $10,000. You may assume thatinterest on any amounts borrowed is already considered in other operating expenses. The statement of financial position at the end of 2015 follows: Your Clinic – December 31, 2015AssetsCashPatient ReceivablesSuppliesTotalEquitiesAccounts Payable: SuppliesAccounts Payable: Service BureauTotal LiabilitiesPartners’ EquityTotal Equities•$20,000240,0008,000$268,000$6,0004,000$10,000258,000$268,000Propose a new service or product to be implemented. Cost will be $80,000 for equipment asdescribed above. Write a proposal that includes the proposed budget for the next 6 years. Your proposal musto consider the three principal benchmarks referenced on p. 105 (Ch. 13) of AccountingFundamentals, explain which benchmarking data you anticipate being the best approachto evaluate your proposed budget and why. Weekly RemindersWeekly SummariesWeekly summaries will be required in this course and counted as class participation. Discussion QuestionsDiscussion question responses will count towards the class participation requirement. ParticipationAll Week: Remember to participate in the class discussions 4 out of 7 days during the week. Summary of Week 4 DeliverablesAssignmentDQ: 1 Complete Exercise 10 on p. 189 (Ch. 8) of Essentials of Cost Accounting. Individualor LearningTeamLocationDueIndividualWeek 4 DiscussionQuestions ThreadWednesdayIndividualWeek 4 DiscussionQuestions ThreadSundayPreparing the BudgetLearningTeamIndividual ForumMondayWeekly SummaryIndividualWeekly EvaluationsThreadMondayDQ: 2 Complete Exercise 15 on p. 189 (Ch. 8) of Essentials of Cost Accounting. Week FiveCost Allocation•••Explain the methods of cost allocation. Analyze the affect of overhead and how cost centers are determined. Compare and contrast uses of fixed and variable costing. Course Assignments10. Readings•••••Read Ch. 11 of Accounting Fundamentals. Read Ch. 12 of Accounting Fundamentals. Read Ch. 4 of Essentials of Cost Accounting. Read Ch. 9 of Essentials of Cost Accounting. Read Ch. 10 of Essentials of Cost Accounting. 11. Discussion Questions••Complete Exercise 7 on p. 225 (Ch. 9) of Essentials of Cost Accounting. Complete Exercise 7 on p. 251 (Ch. 10) of Essentials of Cost Accounting. Explain youranswer. 12. Individual Assignment: Cost Allocation Assignment••Complete Problem 1 under the problem section on p. 251 (Ch. 10) of Essentials of CostAccounting. Answer the following questions regarding the scenario in Problem 1: oooWhat methods of cost allocation were used?How were cost centers determined?How would fixed and variable costing differ in this situation?Weekly RemindersWeekly SummariesWeekly summaries will be required in this course and counted as class participation. Discussion QuestionsDiscussion question responses will count towards the class participation requirement. ParticipationAll Week: Remember to participate in the class discussions 4 out of 7 days during the week. Summary of Week 5 DeliverablesAssignmentDQ: 1 Complete Exercise 7 on p. 225 (Ch. 9) of Essentials of Cost Accounting. IndividualorLearningTeamLocationDueIndividualWeek 3 DiscussionQuestions ThreadWednesdayIndividualWeek 3 DiscussionQuestions ThreadSundayIndividual Assignment: Cost AllocationAssignmentIndividualIndividual ForumMondayWeekly SummaryIndividualWeekly EvaluationsThreadMondayDQ: 2 Complete Exercise 7 on p. 251 (Ch. 10) of Essentials of Cost Accounting. Explain your answer. Week SixPerformance Management•••Evaluate how managers use control systems to achieve organizational goals. Evaluate the health care revenue cycle and how it affects performance management. Compute return on investment, residual income, and economic value added. Course Assignments13. Readings••••Read Ch. 14 of Accounting Fundamentals. Read Ch. 15 of Accounting Fundamentals. Read Ch. 16 of Accounting Fundamentals. Read Ch. 17 of Accounting Fundamentals. 14. Discussion Questions•Discuss how control systems may be used by management to keep a project moving forward. What elements of the project must be included in a control system? Can you think of aninstance when a control system might become a problem for a project? Explain why or whynot. •How might financial ratios be used to effectively manage a health care system?15. Learning Team Assignment: Clinic Performance Evaluation and PresentationDuring year 2015, the following actual events were recorded for the Getwell Clinics. Acomprehensive budget for 2015 was prepared in Week Four. 1. Patient visits amounted to 28,000 in 2015 with an average billing rate of $48 per patient visit. 2. Expenses for 2015 were as follows: ExpensesPhysician’s salariesNurses’ salariesAdministrative and technical salariesMedical suppliesRentService bureau (fixed portion, $24,000)Other expenses (fixed portion, $70,000)Depreciation$552,000195,000198,000159,00048,00052,000158,00016,0003. At the end of the year, payables for supplies were$10,000, payables for the service bureau were $2,500,inventory of supplies were $4,000, and patientreceivables were $160,000. Equipment was purchasedas planned, but only $5,000 was borrowed in the line ofcredit—ignore interest on the borrowin. . .