Health Services Finance - Assignment Example

Health Services Finance Direct Cost and Indirect Costs Direct cost also known as cost objective entails the cost incurred on particular objects such as products and other raw materials used in the manufacture of a company’s end products. Direct cost may also refer to the cost incurred in necessitating service or an activity that is intended to benefit a particular project (Wei-Yu, Dilip, and James 41). For instance, the cost that will be incurred by Chiropractor institution to cater for salaries of the managers who are to oversee the expansion of the organization infrastructures will be rated as direct costs.

Moreover, the wages for the casual workers in the expansion process will also be categorized as direct cost. This example is justifiable since the cost expensed in paying salaries and wages in the expansion process will entirely benefit the expansion project. Indirect costs are services or activities that benefits more than one object (Wei-Yu, Dilip, and James 41). It is almost unfeasible to relate the indirect cost to a particular object. A good example of an indirect cost in Chiropractor organization includes the salaries of permanently employed managers who oversee operations in more than one organization’s branch.

It is sometimes difficult to relate how these organizational managers directly benefit a particular branch.The Use of Responsibility Center at the Chiropractor OrganizationThe responsibility center in Chiropractor organization is incredibly indispensable and valuable. The organization has decentralized its operations to create efficient responsibility centers. Chiropractor has three main responsibility centers that include: investment, profit, and cost (Merkley 41). Cost responsibility center manager has the responsibility of relating the expenses incurred in an organization to the available revenues.

Profit responsibility center is mandated with the responsibility of generating revenue from cash outlays. A profit responsibility center is expected to meet the set profitable goals in the organization. Finally, investment responsibility center’s main role is to manage other responsibility centers. Additionally, the investment center has an obligation of managing the organization’s assets. The other supplementary responsibility of the investment center entails regulating returns on invested resources.

Environmental and Safety Issue in the CommunityThe Chiropractor community has over the year’s experienced endless environmental catastrophes such as earthquakes and other artificial and natural accidents that interfere with their daily operations. This has as a result led to significant loss of lives and property (Chrysanthus 137). However, to counter the inauspicious impact of catastrophes in the areas, community members have instituted various mechanisms and programs that incorporate inputs of the entire community members.

Some of the main programs established in the community entail the establishment of emergency procedures to minimize the impacts of catastrophes, as well as introduction of measures to prevent accidents on students, and other community members. Program administrators also offer full support to necessitate the execution of the already set safety procedures, training and elimination of hazardous practices that are suspected to hinder the implementation of the existing safety programs. Each community member has the responsibility of taking care of his/her own security.

Through public awareness initiatives, community members are also sensitized on the potential environmental dangers as well as the most effective means of minimizing their impacts. Work CitedChrysanthus, Chukwuma. “Environmental Issues and our Chemical World - the Need for a Multidimensional Approach in Environmental Safety, Health and Management.” Environmental Management and Health vol. 9 no. 3 (1998): 136-143. Print.Merkley, Rodney. Describing Human Resource Development in Illinois Social Service Organizations.

New York, NY: University of Illinois at Urbana-Champaign. 2009. Print.Wei-Yu, Kevin, Dilip Chhajed, and James Hess. “Direct Marketing, Indirect Profits: A Strategic Analysis of Dual-Channel Supply-Chain Design.” Management Science, Vol. 9, no.1 (2003): 1-20. Print.