1. Describe the existing needs for cost information healthcare firms.
2. Describe how cost information relates to the three key activities of management: planning, budgeting, and control.
3. Describe the three main phases of the costing process.
4. Explain the two systems necessary to accurately cost healthcare encounters of care.
5. Describe the concept of relative value units

Why do healthcare firms charge such different prices than each other? Why do they charge uninsured patients so much higher prices than those with insurance. Can the various firms costs really be so different from each other? Does it cost more money to treat an uninsured patient?

Your hospital board is considering adding a new service line, focusing either on obstetrics or cancer care. What factors should be considered to compare the costs and profitability of these two service lines?