Bellaire clinical labs, inc case essay

The Departmental Income Statement shows which departments of the company are the most profitable, and which departments are costing the company money.

Bellaire clinical labs, inc case essay

Case Bellaire Clinical Labs, Inc. Prepare a budgeted income statement for based on the information. You may want to re-list your assumptions. What additional assumptions did you have to make, if any?

Bellaire Clinical Labs, Inc. Need essay sample on Bellaire Clinical Labs, Inc. What issues would you bring up with Wilma Lands? I would discuss with Wilma Lands the following issues: Sale price- there is several factors that affect the sales price of test which the company cannot control.

Some of these factors are control cost on test price by healthcare organizations, limited ability to influence the price paid for testing services provided to Medicare and Medicaid beneficiaries, and increase in competition due to new laboratories in the area.

Competition increase in the Boston metropolitan area due to the well-known for its high concentration of exemplary physicians and hospitals. Redirect their services to more specialized laboratories services.

They could research the laboratory services that are increasing in the area and try to add additional services that are not performed by other laboratories.

Cost reduction strategy may need to be implanted since there are external factor that are affecting the sale price. How could such a cost reduction be achieved? Also, Walters may begin to buy in bulk. Bulk buying will results in annual contracts for a period of twelve months with a fixed prices for the entire period.

Another strategy for cost reduction could be the Walters identify if the material cost per test has seasonal cycle of prices.

Hence the company can buy maximum amount of material requirement when prices are low. In addition, cost reductions can be achieved utilizing different approaches.

Walters and Mack may decide to use other methods to reduce cost they can: Reduce existing expenses 2.

Bellaire clinical labs, inc case essay

Eliminate unnecessary expenses 3. Modify business strategies 4. Replace higher expenses with lower expenses for same items The importance of cost reduction strategies cannot be understated, especially when a company is struggling to maintain profitability.

Areas that can be reviewed for expense reductions include the following: Advertising and promotion 2. Billing and collections 3. Other administrative expense If the company must generate more cash as fast as possible, management will have to decide which costs can be most effectively reduced.

If the reduction is needed quickly, expenses cut first will normally be those that are not ixed or directly tied to test production. It is not a good idea to drastically reduce expenses that may affect the service of the company without careful evaluation.

Cost may be viewed as the point of departure or starting place in product pricing Bragg,pag. Walters could use the cost reduction to adjust price to be more competitive or to increase the company profits. What benchmarks should Bellaire use to gauge the reasonableness of the budget? Name some companies that Bellaire might want to compete with.Case Solution.

Operating within the clinical laboratory testing industry, Bellaire Clinical Labs, INC. is really a service firm which is aimed at supplying top quality medical and laboratory testing services to local doctors, in addition to, to hospitals.

Bellaire Clinical Labs, Inc. is a Harvard Business (HBR) Case Study on Finance & Accounting, Fern Fort University provides HBR case study assignment help for just $ Our case solution is based on Case Study Method expertise & our global insights. Bellaire Clinical Labs, Inc. Case Essay Words | 4 Pages.

1. Prepare a budgeted income statement for based on the information. You may want to re-list your assumptions. What additional assumptions did you have to make, if any?

Bellaire Clinical Labs, Inc Case Essay Sample. To help students gain an overview of the entire accounting process in the real world and to become competent financial managers able to apply their knowledge to the situations they will encounter in the workplace.

Bellaire clinical labs, inc case essay

Bellaire Clinical Labs, Inc. Bellaire Labs provides both routine and specialty tests. Routine tests are simple blood tests that patients receive as part of physical examinations and are highly automated, requiring low-skilled personnel. Bellaire Clinical Labs, Inc. Case. Topics: Price What additional assumptions did you have to make, if any?

Bellaire Clinical Labs, Inc. Budgeted Income Statement For the year ended in Sales Routine test Physician pays $5,, Patient pays 2,, Other parties pay .

Bellaire Clinical Labs, Inc Case | Essay Example