A case study on Westmount Retirement Home

A case study on Westmount Retirement Home New information can be considered valuable in terms of decision making. From new information, the derivation of new and more applicable strategies can be utilized. In this paper, an analysis on how does new information becomes a valuable asset to transform Westmount Retirement home struggles with its current accounting system which affects its profitability to a more effective Activity-based costing system that can improve overall business operations. This paper outlined both the strengths and limitation of the current cost system by Westmount and at the same time provided new elements that support the proposed Activity-based costing system and its benefits. The study also showed calculated suggested new price rates on the room options for Westmounts current and potential residents together with its proposed new fees for additional services and medical needs. Introduction A 125 Unit retirement residence was established on the year 1997. It was called Westmount Retirement home. The core purpose of this retiring home is to cater to seniors of the community. Westmount Retirement home provides both assisted living and independent supportive living options to their clients. Their current clients are divided into two segments, one is the independent supportive residents which require no assistance with the tasks of daily living, the other are assisted living residents which basically requires additional assistance which varies depending with their medical needs and degree of frailties.There are thirty-one (31) employees on Westmount that is spread across all of the retirements home several departments. There is basically several staff employed on a department that specializes on recreational activities, housekeeping, management, building maintenance and nursing. With regard to prices offered to Westmounts residents, the pricing model is actually simple and uniform for all residents and the only variance or difference is fundamentally based on the size of each room. In this study, the author will dissect the case by providing a discussion on Westmounts poor financial results in 2005; this will be followed by analyzing the companys current costing model by highlighting its strengths and limitations. Next will be a computation of the new cost per patient using the data of the current pricing model to create a new costing system. And finally, a discussion on how valuable new information can assist Westmount into creating a more suitable pricing scheme on its residents. Statement of the Problem Westmount Retirement Home has been struggling due to low profitability of its business operations as well as its current accounting system (Shomair 2008). From the low profitability standpoint, Westmount has faced stiff competition, among other local key players on their industry. Westmount has currently three main competitors namely: Chelsea Park retirement, Central park lodge and Longworth Retirement residence. Heavy competition arose due to the increasing demand for assisted and supportive living options. Thus, due to the availability of several retirement homes, key industry trends shows that a lot of potential residents are basing their decisions on residence options on the factor of cost. Regarding Westmounts current pricing model and accounting system, the company offers a standard rate (price) on numerous services to various patients and at the same time attending to individuals specific needs. The issue here is that there is no system or a defined activity-based costing (Platt and Vaysman 2000) in place to account for those varying service needs required by different residents. The obvious result here is a low profitability which can be attributed to its high operating expense. Westmounts Current pricing model: Strengths and Limitations Strengths Based on industry trends, a lot of potential residents are focusing on the cost factor on deciding which retirement home they will get into. Westmount Retirement Homes offers a very attractive and competitive pricing package by having a basic and standard pricing scheme in which the only difference in prices are from room sizes and not other care services. This has attracted a number of residents to Westmount. Not only does Westmount have a uniform price rate across all their services, it also has the most affordable prices compared to its competitors. Westmounts Package or Deal Pricing or most commonly known as a Bundled Payment (Miller 2008) provides its target market a hassle free approach on understanding the total cost of being a resident. Limitations The current costing system of Westmount does not provide any valuable information more particularly on the cost of each their services, since the only method of differentiation with their costs are on room sizes. Potential variability in costs especially on specific services in relation to clients needs is disregarded, due to the limitation of the current costing model. Substantial revenue can be lost as well with this model. As an example, , resident couples can stay at their rooms with no additional cost and have the same care and services as long as they pay for the room rate only. The current costing system does not provide any avenue or room for improvement specifically on operating expenses. For example a lot of staff hours are still being paid even without services rendered. New Costing Model Design Activity-Based Costing This new cost model will definitely improve not only the current accounting system of Westmount but its overall profitability as well. The benefits of an Activity-based costing is that instead of costs assigned to fixed costs, are now can be utilized as variable costs depending numerous activity cost pools in Westmount (Weygandt, Kimmel, Kieso 2009).In essence, it controls the companys overhead costs and leads to a more effective decision making by the management on how to improve overall finances. Room Rates A new rate will be reflected on this new costing model. To acquire a more suitable and competitive rate for Westmount, New room rates will be the computed by getting the average cost per room of all the three main competitors (see Exhibit 1). The average cost per room will provide an essential perspective on how much does the competitors charge per room (studio, one bedroom and two bedroom models) in this type of industry. Also, it can be used as the new room rate for Westmount. The purpose of which is for the discerning buyer would not only look at the room prices but also other features: such as quality of services, facilities etc. This is possible since the difference between the New Westmount prices compared to its competitors are relatively insignificant, in fact the new rate on average is cheaper than the other two competitors (Central and Longworth). Except for Chelsea Park in which Westmount can compete via other methods: for e.g. Marketing high quality services and facilitie s. Price differences because of room size will still be applicable with the new rates. Regarding the current issue with having couples share the room and services, Westmount can utilize their two bedroom units. Only one competitor has this residential type (Chelsea Park). Westmount can have the option of selling those units to couples with the new room rate without an additional charge. This will provide Westmount the ability to attract more potential residents and have those clients focus on getting a two bedroom if they want to consider being with their spouses. With these new rates alone, Westmount can generate more revenue out of its projected client base of 160 residents and in effect will increase profitability. Identifying and Matching Residents Needs Each resident may have different or special needs, contrary to the previous system in which these differences are barely nonexistent. This can be done by Westmount using proper segmentation of all its current residents, more particularly to those residents require additional services or different levels of care. This can be segmented by using a three modelled option for service fees. First are the residents with no medical needs, then with moderate medical needs and lastly those with intense medical needs, for the last two groups, they could have the option to purchase nursing and medical support at an additional cost. This also follows the activity-based costing model proposed for this company. New Prices for Additional Services and Medical Needs For those living residents with no medical needs rates, the new room costs will be the base price to be applied. On the other hand, those on the other group which require added services and medical needs would pay additional costs for each service and medical need (see Exhibit 2 for Activity-Based costing) The price of each service will be determinant to its operating cost plus 15% mark-up, to ensure adequate return to Westmounts shareholders and enough funds for necessary capital requirements. Utilization of Labor Availability As in any organization, some employees are more productive than others (Platt, and Vaysman 2000:19). With this new model the author allocated cost of each staff members compensation-related costs among the several activities in which he or she is responsible. Since a lot of man-hours are consistently wasted with the current costing system, the new system approach would be almost the exact opposite. Each resident group will now have staff available to them only when they really need them. Examples of these are dieticians employed for those patients with serious medical conditions; their hours now will be spent entirely to this resident group, in effect decreasing their total work time. And since they will now be paid on an hourly basis it will drive down costs on this support service. These hourly basis of work schedules will be applied across the board to ensure that all time spent will be productive and useful. This is also a win-win suggestion especially the extra time given to these staff members will create a much more balance in their work-life relationship. As for Westmount, obviously this will help drive down operating costs, by eliminating its current fixed costs of labour and transforming it into a variable costs which can either be seasonal depending on the demand for staff availability. Value of New information In any facet of economics most particularly in enterprise, new information that can be used to apply new strategy and other development are all considered essential and valuable. Cohen and Leviathan stated that The ability to exploit external knowledge is thus a critical component of innovative capabilities (1990:122). In this case, Westmounts administrator Helen Roswell, have noticed the low profitability of the firm and analyze what could be the causes. She acknowledges external factors could contribute to it, but her main concern was on their pricing model and total operating expenditure. This realization made Roswell think of other alternatives apart from the current cost model, especially when this current model has a direct impact on the firms overall profitability. To continue to attract more clients and still remain profitable, a new pricing model was needed to reflect the level of medical care and service required by each individual patient. Roswell has also decided that she would need to assess the true cost of each Westmounts services, and then use this information to develop a new pricing model. The price schemed for room rates specifically as aforementioned in this study will be the monthly average price of all industry players. The added or special service or medical need will be on a case to case basis in which the price will be service operational cost plus 15% mark up. This new pricing scheme can definitely alleviate Westmounts overall profitability and decrease operational expenses. Calculations: As an example for Supportive Services: Number of Employees:17 Total Cost amounted to $548, 573. Total wages is at $538, 392 Total Supplies used cost $10,181 Two (2) dieticians is compensated $18.50/hour each. 37 hours/week 48 weeks Total costs for Dieticians Wages per year: $65, 712 Estimated. Number of residents with intense medical need for dieticians 50.The total cost of the two dieticians wages for this scenario will now be allocated on an hourly basis or 25% allocation example, in which the demand for their services ( in this case the 50 residents) will be applied.

Cell Organelles :: essays research papers

The studies of Robert Hooke 1665 into a plant material would allow the determination of a pore like regular structure surrounded by a wall of which he called ‘cells’ this in itself unbeknownst to him, was the discovery of the fundamental unit of all living things. In 1838 a botanist called Schleiden derived the theory ‘The basic unit of structure and function of all living organisms is the cell.’ Over 150 years later this can be regarded as one of the most familiar and important facts within the biological fields. Drawing of cork cells published by Robert Hooke 1665 The Cell itself and use of Cytology: The cell can be thought of as a bag in which the chemistry of life is allowed to occur, partially separated from the environment outside the cell, it exists within all living organisms as its basic structure. The study of cells is made possible through the use of ‘cytology’ the preparation of materials for examination through microscopes as an average animal cell exists on a scale of 10 microns roughly one hundredths of a millimetres. Originally light microscopy was used in this field but with the advancement of knowledge scientists were restricted to 200nm magnification, or 2 tenths of a micron. Realising the existence of cell organelles within the cell structure, allowing the function of the cell itself to occur; It was necessary to increase magnification by utilising an alternate source radiation (alternate to light).The result was the electron microscope, whereby the short wavelength and negative charge of electrons when supplied with energy allowed for greater focusing with electromagnetism. This method bends the path of the beam in the manner of a lens to light. Cell Organelles and the variation between Plant and Animal Cells: We have already determined the cell to be the foundation to all organisms, however the term cell is associative and categorises a wide variation. Every animal cell has a specified function whether it be the production of hair, mucus, or the process of other chemicals ( multiple reactions occur within a cell for other purposes i.e. creation of ATP, protein manufacture etc.) So from this we must examine the cell in more detail and determine what it is within the cell that creates it specialised function and separates it as an individual type. Plant cells vary from animal through the existence of certain organelles. Organelles are the substances that provide a cell with the ability to produce (a production line) and exist within the cells boundaries.

Compare and contrast Oedipus Rex Essay

Compare and contrast Oedipus Rex and Faustus as tragedies.  The two plays Oedipus Rex and Faustus are both tragic  plays. Both of the plays end with the main character losing their  life, and actually even their afterlife. But as tragedies the two  plays have some similarities and some differences. The characters  themselves are different, and they both want different goals out of  each their own lives. Oedipus Rex and Faustus are two tragedies that  compare and contrast in many ways. The two main characters of the plays Faustus and Oedipus  Rex are very different from each other. Faustus, the main character in  Faustus, is not trying to save any civilizations like Oedipus is.  Faustus is really trying to make himself a better person by learning  black magic. He wants to learn evil to make himself more powerful as  a person. He signs his soul over to the devil in exchange for  twenty-four years of service by Mephistophilis. Greed is the main  reason for the fall of Faustus. He chose his own destiny; he knew  that when he signed that contract his soul belonged to the devil. Oedipus on the other hand, did not really have much of a choice in his  fate. He was pretty much damned from the beginning. He was  prophesized to kill his father and marry his mother, so his father and  mother tried to change fate. But as the story goes, the prophecy came  true. All Oedipus wanted to do was stop the plague from going through  his city. But it ended up that he was the cause, not the solution.  His eternity was not lived out in hell, but spent exiled from Thebes. Oedipus did not choose his fate as Faustus did. The characters of the  two plays both suffered in the end, but one chose his and one had to  live with his prophecy.  Smith 2  The plots of the two plays are different from each other also. The  plot of Oedipus Rex is for Oedipus to find out why the plague has  struck his town, and how to get rid of it. But the plot ends up  turning into what was prophesized to his parents a long time ago.  Oedipus ends up finding out that he has married his mother and that he  has killed his father. The whole play is a tragedy. There is no  comic relief in it, as in Faustus with his practical jokes. In  Oedipus the plot revolves around the fate of one man. In Faustus the  plot revolves around other people as well. There are other subplots  in the play not just the plot with Faustus. Faustus and  Mephistophilis go about causing trouble throughout different cities,  really trying to cause evil wherever they go. In Oedipus, there is no  other trouble in the play, just the problem with Oedipus killing his  father and marrying his mother. The plots have nothing in common  except how the end. In the end of Faustus, Faustus must spend all of  eternity in hell. His soul now belongs to the devil. In the beginning of the play he did not believe in life after death, I bet he  is hitting himself on the head now. In the end of Oedipus Rex,  Oedipus cuts his own eyes out and gets exiled out of Thebes. He  spends the rest of his life with out a home. The ultimate tragedy  really, he just got stuck in the wrong place at the wrong time. Both of the plays are different from each other, but both  end tragically. One of the similarities of the play is seen at the  end of Oedipus Rex when the Chargos basically says that even the  greatest of men can crumble to ruins; all humans are subject to  suffering and pain. This theme is true in both plays. Seen at the end  of Faustus, when Faustus was trying to stop the clock. Even the  greatest of men can crumble to ruins.

FreeBSD OS essays

FreeBSD OS essays There are many operating systems out in the world at the current time, however as youve probably realized or would guess some are better than others. For example windows is the most well known and most used Operating System out on the market today and for the last few years. However just because its the one that is most known and used doesnt mean its the best. In fact there are many other Operating Systems that are much better. However each Operating System is better for its own section, though some are overall better. Windows is one of the best for user friendliness but isnt very powerful. However FreeBSD is user friendly (assuming that the person knows something about computers) and is extremely powerful and very stable. Two things that Windows does not have. Some things that make FreeBSD a better Operating System than others out on the market, well the first and most important is the ports tree FreeBSD has, it is Unix based, and has a very customizable kernel for the core of the system. The first thing that makes FreeBSD different from many other Operating Systems is its file system. Its somewhat the same as most other Unix file systems such as on Linux systems. (The FreeBSD Project) Though it has its own commands that allow it to do specific things only unique to FreeBSD. And a very large difference between the file system on a FreeBSD machine rather than a Windows machine is that the navigation of a FreeBSD consists of a hierarchy type system. Much different that a Windows machine has. With a different navigation system than on a Windows machine, this means that there is more control for a user inside their own computer. Also there are many different ways to show and list what files are in a folder and what folders are inside a directory, you can even find out what files are in a different directory without having to be inside it ...

The Legacy of Bob Marley essays

The Legacy of Bob Marley essays Throughout the years there have been many great musicians, but none were a influential as Bob Marley . Through his song not only started a revolution in Jamaica, but also in parts of Africa. Also, he love to speak about world peace and unity. In 1980 Bob Marley and The Wailers were invited to play at the Independence Ceremony of Zimbabwe. The thirty five year old Marley said this was his greatest honor ever. He also received The Order of Merit , Jamaicas third highest honor, in recognition of his contributions to Jamaicans Culture. These highlights just start to tell how he moved people with his lyrics. In such songs as Get Up Stand Up. He encourages his listeners to stand up to adversity or fall to oppression. In some respects, he was a Jamaican Martin Luther King Jr. Using words instead of knives as his weapon against adversity. When Jamaica was fighting Britain for their independence they listen to Marleys music for inspiration, and when they gained freedom who do you think they invited to perform at the ceremony? The talented Marley. These are just a few stories that prove that he was more of a leader In addition to preaching about standing up for your rights, Marley also spoke about world peace. Examples of this are in song like One Love and Exodus. He is saying that the people of the world need to stop fighting over our simple differences. Instead of hating each other we need to start loving each other. Even though he really wanted Africans to come together, when he was on stage he sang to everyone. It didnt matter if you were yellow, white, etc., he just wanted everyone to make one love. He thought that if everyone loved each other it would it would be like living in heaven. No more violence, suffering , and racism. This all stem from his religious backgro ...

Research paper in Information technology articals Essay

Research paper in Information technology articals - Essay Example nder research reports about the new version of Microsoft’s sleek and strong server operating system which is enhanced in options by virtualization, networking and security. This is a product which the IT sector cannot resist to use and seems to have a competitive edge over the Linux. The new version of operating system overrides the complaint about Microsoft Window Server resource foot print in terms of memory, CPU and disk space in its 2003 version. However, the new version has accommodated more requirements from the perspective of fulfilling physical server. Windows Server 2008 comes with a 64 bit server operating system that is equipped with a smaller average resource footprint than Windows Vista. Windows Server 2008 Datacenter is built to function with speed from the sleek Server Core which is a light weight virtualized guest operating system. Windows Server 2008 is all set to replace the Windows Server 2003 in all IT outlets due to its independent virtual servers that is efficient in both features and footprint over a wide range of choice. Options to use email, database, robust edge services and collaboration are embedded in the form of add-ons. However, these options can be set in the host level by providing the option of virtualized guest allocating applications and services that use the OS components. In short, one set of SQL Server or Exchange Server extends service for other options like never before. The article goes on to explain the viability of combining Window Server 2008 with an eight core, two socket AMD Barcelona reference server that yields impressive results that applaud the hardware architecture of the Windows OS. The article reveals that Windows Server 2008 is constructed for virtualization. All the stock keeping units (SKU’s) till the Datacenter are equipped to meet buffet scalability. A user can find the detailed features of the server with more accuracy than one could view in Windows Server 2003 like feature to run the OS, where to

Road King Trucks Assignment Example | Topics and Well Written Essays - 1750 words

Road King Trucks - Assignment Example Road King Trucks should accept the project as it has a positive NPV and a low payback period. In addition, the company’s IRR  is higher  than the  Road King Trucks  cost of capital. Further, the company has a Profitability Index, PI, of greater than one implying that it has a higher per dollar return. Road King Trucks is going to gain $532 million in wealth when the expansion decision implemented, which is a huge amount money on a scale like this. Road King Trucks has a bond rating of AA. This makes its risk relatively low (Groppelli & Nikbakht, (2006). For these reasons, the company should definitely say yes to the expansion decision. Road King Trucks, Inc. that is a company that manufactures trucks is contemplating on introducing a public transport bus. A recently hired, CEO Michael Livingston organized a meeting with the company’s top engineers and managers to examine introducing into its existing product line a large, public transit bus (Bidgoli, 2004). The new CEO Michael Livingston recognized the opportunity of building these public transit buses due to the escalating  prices of fuel, the  roads  congestion  together with  the ever increasing parking fees. It is likely that more people are going to use public transportation because the prices of oil keep on rising with no sign of decreasing in the near future. As a result, the public transportations demand is expected to increase and continue into the spring as many people will search for alternative transportation. Road King Trucks should, therefore, adapts itself to the market changes in order to be at the forefront of their field of business (Groppelli & Nikbakht, (2006). The company should go Green by adopting engines that demonstrate immense environmental consciousness to the world (Baker & Powell, 2005). This will attract people that require public transportation thus fulfilling their needs or demands.