SERVICE COSTING

Prepared By: Mohammed Qamar Rahnaa Atta

Noha Hamed Ghada Nasr
 Cost object

1. Cost object Surgical Removal of dental cyst

2. Organization Oral And Maxillofacial Surgery Center

3. Data collection
 Dental Cyst Removal Detailed Flow Chart
7. Preparation for surgery
Start Instruments selection 8. Surgical
operation
Patient identify
Using blade,
Anesthesia topical and local surgical bur, hand
yes piece, needle,
1. Personal History Using patient files
sutures, syringe,
No saline, cotton rolls,
End 6. Surgical guaza, disinfectant
treatment
2. Medical and dental history
Using patient files and records 9. Medication
5. Diagnosis Anti-inflammatory, Analgesic
Antibiotic

3. Examination 4. Radiographic Examination 10. Follow up after 3-6 days

Extra-oral and intra-oral examination Using x-rays machine, films and Using PPE and examination kit
Using PPE and examination kit chemicals
End
 Indirect Cost
Items Cost
1. Rent 30000

2. Electricity 5000

3. Water 1000

4. The doctors salary 50000

5. The nurses salary 10000

6. The cleaner salary 2000

7. The door man salary 2000

Total 100000 LE
 Direct Cost = Variable Cost
Items Cost
1. PPE Personal protective equipment includes gloves, gown, mask, 500 LE
Protective barriers, towels and protective eyewear

2. Exanimation kits (Plastic disposable instruments) 500 LE

3. Anesthesia topical and local 250 LE

4. Surgical bur 250 LE

5. Blade , needle, sutures, syringe, saline, cotton rolls, and guaza 500 LE

6. Disinfectant, disinfection or sterilization spray and solution 500 LE

chemicals, x-ray film
7. % for team work 2500

Total 5000 LE
 Fixed Cost
Items Cost 10% of Cost
1. Dental unit 50000 5000

2. Dental Hand piece 3000 300

3. X-ray machine 40000 4000

4. Autoclave 40000 4000

5. Distilled Water machine 2000 200

6. Surgical instruments 15000 1500

Total 150000 LE 15000 LE

 Over-head Allocation Form

Variable Cost Fixed Cost Overheads

5000 LE 15000 LE 100000 LE

 Over-head Allocation
1. Support Service Cost Center:
• Rent = 30000 LE (Surface Area)=300 m2
• Utilities = 6000 LE

2. Mission Cost Centers:

• Dental Department = 15000 LE (Surface Area)= 100 m2
• Orthodontic Department = 20000 LE (Surface Area)= 200 m2
 Over-head
OVER Allocation
HEAD ALLOCATION

• For Surgical Department :

• Rent per meter = 30000÷300= 100LE per meter

• Rent for Surgical Department = 100 x100=10000LE
• Utilities for Surgical Department = 6000 ÷ 2 = 3000LE

Total fixed cost = (15000+10000+3000) = 28000LE

Price/Case= 9000LE
 Breakeven Point Analysis
• At Breakeven Point:
Total Revenue = Total Cost
TR = TC
Price /Case XN = TFC + (VC/Case XN)
9000N = 28000+(5000N)
9000N-5000N = 28000
4000N = 28000
N = 7 Cases
So: At Case 6 = loss At Case 8 = profit
 Breakeven Point Analysis
Case Variable Cost (L.E) Semi variable Cost (L.E) Revenue (L.E)
2 10000 38000 18000
4 20000 48000 36000
6 30000 58000 54000
8 40000 68000 72000
10 50000 78000 90000
12 60000 88000 108000
14 70000 98000 126000
16 80000 108000 144000
18 90000 118000 162000
20 100000 128000 180000
22 110000 138000 198000
24 120000 148000 216000
26 130000 158000 234000
28 140000 168000 252000
30 150000 178000 270000
Breakeven Point Analysis
Thank You