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Determination of chest x-ray cost using activity based costing approach at Penang General Hospital, Malaysia

BACKGROUND: Activity based costing (ABC) is an approach to get insight of true costs and to solve accounting problems. It provides more accurate information on product cost than conventional accounting system. The purpose of this study was to identify detailed resource consumption for chest x-ray pr...

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Autores principales: Atif, Muhammad, Sulaiman, Syed Azhar Syed, Shafie, Asrul Akmal, Saleem, Fahad, Ahmad, Nafees
Formato: Online Artículo Texto
Lenguaje:English
Publicado: The African Field Epidemiology Network 2012
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3415060/
https://www.ncbi.nlm.nih.gov/pubmed/22891098
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author Atif, Muhammad
Sulaiman, Syed Azhar Syed
Shafie, Asrul Akmal
Saleem, Fahad
Ahmad, Nafees
author_facet Atif, Muhammad
Sulaiman, Syed Azhar Syed
Shafie, Asrul Akmal
Saleem, Fahad
Ahmad, Nafees
author_sort Atif, Muhammad
collection PubMed
description BACKGROUND: Activity based costing (ABC) is an approach to get insight of true costs and to solve accounting problems. It provides more accurate information on product cost than conventional accounting system. The purpose of this study was to identify detailed resource consumption for chest x-ray procedure. METHODS: Human resource cost was calculated by multiplying the mean time spent by employees doing specific activity to their per-minute salaries. The costs of consumables and clinical equipments were obtained from the procurement section of the Radiology Department. The cost of the building was calculated by multiplying the area of space used by the chest X-ray facility with the unit cost of public building department. Moreover, straight-line deprecation with a discount rate of 3% was assumed for calculation of equivalent annual costs for building and machines. Cost of electricity was calculated by multiplying number of kilo watts used by electrical appliance in the year 2010 with electricity tariff for Malaysian commercial consumers (MYR 0.31 per kWh). RESULTS: Five activities were identified which were required to develop one chest X-ray film. Human resource, capital, consumable and electricity cost was MYR 1.48, MYR 1.98, MYR 2.15 and MYR 0.04, respectively. Total cost of single chest X-ray was MYR 5.65 (USD 1.75). CONCLUSION: By applying ABC approach, we can have more detailed and precise estimate of cost for specific activity or service. Choice of repeating a chest X-ray can be based on our findings, when cost is a limiting factor.
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spelling pubmed-34150602012-08-13 Determination of chest x-ray cost using activity based costing approach at Penang General Hospital, Malaysia Atif, Muhammad Sulaiman, Syed Azhar Syed Shafie, Asrul Akmal Saleem, Fahad Ahmad, Nafees Pan Afr Med J Research BACKGROUND: Activity based costing (ABC) is an approach to get insight of true costs and to solve accounting problems. It provides more accurate information on product cost than conventional accounting system. The purpose of this study was to identify detailed resource consumption for chest x-ray procedure. METHODS: Human resource cost was calculated by multiplying the mean time spent by employees doing specific activity to their per-minute salaries. The costs of consumables and clinical equipments were obtained from the procurement section of the Radiology Department. The cost of the building was calculated by multiplying the area of space used by the chest X-ray facility with the unit cost of public building department. Moreover, straight-line deprecation with a discount rate of 3% was assumed for calculation of equivalent annual costs for building and machines. Cost of electricity was calculated by multiplying number of kilo watts used by electrical appliance in the year 2010 with electricity tariff for Malaysian commercial consumers (MYR 0.31 per kWh). RESULTS: Five activities were identified which were required to develop one chest X-ray film. Human resource, capital, consumable and electricity cost was MYR 1.48, MYR 1.98, MYR 2.15 and MYR 0.04, respectively. Total cost of single chest X-ray was MYR 5.65 (USD 1.75). CONCLUSION: By applying ABC approach, we can have more detailed and precise estimate of cost for specific activity or service. Choice of repeating a chest X-ray can be based on our findings, when cost is a limiting factor. The African Field Epidemiology Network 2012-06-21 /pmc/articles/PMC3415060/ /pubmed/22891098 Text en © Muhammad Atif et al. http://creativecommons.org/licenses/by/2.0 The Pan African Medical Journal - ISSN 1937-8688. This is an Open Access article distributed under the terms of the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
spellingShingle Research
Atif, Muhammad
Sulaiman, Syed Azhar Syed
Shafie, Asrul Akmal
Saleem, Fahad
Ahmad, Nafees
Determination of chest x-ray cost using activity based costing approach at Penang General Hospital, Malaysia
title Determination of chest x-ray cost using activity based costing approach at Penang General Hospital, Malaysia
title_full Determination of chest x-ray cost using activity based costing approach at Penang General Hospital, Malaysia
title_fullStr Determination of chest x-ray cost using activity based costing approach at Penang General Hospital, Malaysia
title_full_unstemmed Determination of chest x-ray cost using activity based costing approach at Penang General Hospital, Malaysia
title_short Determination of chest x-ray cost using activity based costing approach at Penang General Hospital, Malaysia
title_sort determination of chest x-ray cost using activity based costing approach at penang general hospital, malaysia
topic Research
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3415060/
https://www.ncbi.nlm.nih.gov/pubmed/22891098
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