CHAPTER: 4 FINDINGS
 
FINDINGS

Fortunr hospital has only three sources of revenue they are, out door income, seat rent and operation theater charge.
 
They have the total income of Tk 2361500 and from the seat rent; they earn Tk 997500, revenues per year.
 
This seat rent is collected from two types of seat- general bed and VIP bed.
 
Their rent per seat is Tk150 for general and Tk. 700 for VIP seats per day.
 
Their cost per seat per day is Tk. 87.70 for general bed and Tk. 405 for VIP bed.
 
Fortune hospital ltd. are in a profit position for general bed for Tk. 62.3 (per day allocation) and profit Tk. 295 from VIP bed (per day allocation).
 
Their profit from general bed is 41.53% and profit from VIP bed is 42.14%.
 
Their profit margin for outdoor revenue is 37.71% and from Operation Theater, charge is 32.59%.
 
 
CHAPTER: 5 CONCLUSION AND RECOMMENDATIONS
 
5.1 CONCLUSION
 
Cost allocation is one of the most difficult tasks in running any business. Accurately understanding the costs, however, are imperative if anyone want his business to succeed. One has to price the products or services in a way to be profitable and allocating costs is a major part of profitability.
 
Overhead allocation is one of the more confusing and complex issues facing many businesses. Yet, figuring out how to best determine overhead is very important to a firm’s profitability. Here, for the calculation of overhead and direct expenses we used the physical output measure. From the overall calculation, we get the cost per bed and the profit per day per bed. This calculation gives us the result that the private hospital is making about 41.53% profit from their general seat and 42.14% profit from VIP bed. They have only other two types of revenue source as outdoor revenue and operation theater charge. The profit margin of outdoor revenue and operation theater charge is 37.71% and 32.59%.
 
We try to make this report as correct as possible with the help of the information has been supplied by the Fortune Hospital authority. 
 
 
5.2 RECOMMENDATION
 
They have only three sources of revenue. They are --from the seat rent, from the outdoor and from the operation theater charge. They must try to increase their sources of revenue.
 
Today’s market is competitive market. In private hospital or clinic sector there are number of competitors. So to exist in this competitive market Fortune hospital should try to increase their health services.
 
Their hospital in a rental building for which they have to give Tk. 24000 per month. That is why, though it is a newly establish hospital should try to make their own hospital building.
 
It is only 20 beds hospital. To meet the increasing demand in medical sector they should try to increase their bed capacity with modern medical instruments.
 
This hospital is in Patuakhali district. And they are in a profit position in terms of general bed for about 41.53% and profit from VIP bed is about 42.14%. For this reason, their seat rent basically in general bed and in VIP bed is in somehow properly allocated. But in this competitive market to derive more client they can minimize their seat rent.
 
Their cost for each general bed is Tk. 87.70 and Tk. 405 for VIP bed. But the seat rent for general is Tk. 150 and for VIP is Tk. 700. So they can take client driven policy if the management is aggressive.
 
To days, market is very much competitive. So in taking any type of decisions they should be very much careful.
 
There is no ambulance service by the Fortune hospital. They should try to provide this facility as early as possible.
 
5.3 BIBLIOGRAPHY
 
1. Matz Adolph & Usry Milton F.; Cost Accounting Planning and Control ; 8th
    edition, South western publishing company.
 
2. Basu Sankar Prasad & Das Monilal; Theory and practice of costing
    (Volume one); 13th edition, Rabindra library.
 
3. Horngren Charlest T., Datar Srikant M. & Foster George; Cost Accounting;
    12th edition, Prentice hall of India private limited.
 
5.4 Appendices
 
 
Fortune hospital ltd.
Sher-E-Bangla Road, Patuakhli
Income statement for the 2007