Application Research On Cost Accounting Of Hospital Based On Activity-based Costing

As the medical service industry is getting increasingly market-oriented, thecompetition with which the public hospitals are faced is getting more and more fierce.As a result, the traditional hospital cost management system gradually exposes itsshortcomings. At present, Hospitals in China mainly use the traditional costaccounting method. Although it is simple and easy to operate, there are such issueslike unreasonable cost allocation, inaccurate accounting results, etc. Consequently, thetraditional method becomes unable to meet the needs of the current hospitals in costmanagement.Based on the current situation of hospital cost accounting and the relevanttheories of Activity-Based Costing, this paper first analyzes the necessity andfeasibility of implementing Activity-Based Costing in hospitals, builds Activity-BasedCosting model, and then selects the CT room of A hospital as the research object. Byusing the traditional cost method and Activity-Based Costing respectively, the CTroom costs and medical service project costs are calculated. By analyzing andcomparing the accounting process and accounting results, it is found that theActivity-Based Costing can better meet the needs of modern hospitals in costmanagement. Finally based on the practical situation of the hospital, some suggestionsare put forward for the implementation of Activity-Based Costing in hospitals.This paper concludes that Activity-Based Costing can provide more concrete andaccurate cost data, control cost more effectively and further improve the hospital costaccounting system. Therefore, implementing Activity-Based Costing in hospitalswith good conditions can raise hospital cost accounting and management level, thusincreasing its market competitiveness.