Page 1 of 7 ACCT3104 Case Study

ACCT3104 Advanced Management Accounting
Semester 2 2024

Case Study Individual Assignment
Get Better Medical
(Weight: 20% of Final Grade)

Due Date for Submission: 1:00pm on Friday 4th October 2024

This document has the following parts:
• Administration;
• Case Study Requirements; and
• Marking Rubric
ADMINISTRATION
Submission Requirements:
Each student needs to complete the Get Better Medical case study following the Case
Study Requirements and submit by the due date and time following the submission
requirements outlined below.
1. The Case Study Assignment is to be submitted through Blackboard following the
Assessment link.
2. Each student must submit their case by 1pm Friday 4th October 2024. Your
“submission title” and your file name must be “ACCT3104 Student Number” (e.g.
ACCT3104 St. No. 1234567). You should submit a PDF of your case report as well
as a PDF of your Excel File of your calculations as an appendix.
3. You are required to submit a report of up to three typed pages (11pt Arial font with
1 line spacing, normal MSWord margins) that will contain the tables as
described in the case study requirements. You do NOT need a title page.
4. Any answers provided beyond the page limit (i.e., 3 page report excluding excel file
appendix) will NOT be marked.
5. Where a submission has not adhered to the page limits, font size, spacing, and/or
margin guidelines as stipulated, there will be an adjustment to the mark at the course
coordinator’s discretion.
6. Your assignment must reflect your own understanding of the case. Copied or
plagiarised work will not be tolerated (students should refer to the University
policy on plagiarism).
7. No hard copy submission is required.
8. This assessment task evaluates students' abilities, skills and knowledge without the
aid of Artificial Intelligence (AI). Students are advised that the use of AI technologies
to develop responses is strictly prohibited and may constitute student misconduct
under the Student Code of Conduct.
Grading:
Students are provided with a marking rubric later in this document.

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CASE STUDY REQUIREMENTS

Background:
Get Better Medical is a medical service entity (administrative unit) that was established in
2010.The practice first saw patients in 2010. The 4 owners of the practice are General
Practitioners (GPs). A number of sole trader GPs also work at this practice. During the
COVID period, the practice was provided with Government subsidies. These subsidies are
in addition to the ongoing Practice Incentive Payment (PIP) government subsidies (block
funding). A portion of the government subsidies were in relation to the establishment of a
COVID respiratory clinic at the practice.
The service entity is a Unit Trust and in the 2023 financial year there are 4 unitholders. In
the 2022 financial year there were 6 unitholders.
The practice is open every weekday from 8am – 6pm and 8am – 12 noon on weekends. Not
all doctors work every day and there is only one doctor working on weekends on rotation.
The practice is a private billing practice.
Billing information:
Short consultation $75 (10 minutes)
Medium consultation $110 (20 minutes)
Long consultation $135 (30 minutes)
In 2023 financial year there were 13 GP doctors, including the practice owners. This is the
same number of GPs as the 2022 financial year. Given annual leave, sick leave and study
leave the practice has the equivalent of 10 GPs working on average 30 hours per week and
50 weeks per year.
The “service fee” revenues are the amounts paid to the practice by the sole trader GPs (non-
owners) as a fee for using the facilities. To calculate total private billing the “service fees” in
the Unit Trust must be converted to billings for the practice. The current “service fee”
represents 40% of total billings for the non-owner doctors. This needs to grossed up to 100%
to calculate billing revenues for the contribution margin. The 60% of these service fee billings
that are paid to the non-owner doctors who provide the patient medical services will be
added back to the costs in the P&L to determine the contribution margin.
To calculate the number of each type of consultation, short medium and long that takes
place on average every hour of opening, please assume that on average one short and one
medium consultation takes place each doctor hour. You can calculate how many long
consultations take place on average per doctor hour using this information and the average
revenue per doctor hour. The “other revenue” and “government subsidies” are fixed amounts
and do not relate to the number and type of services provided and do not need to be
considered when calculating the contribution margin and variances in this case study.
The costs that are variable are marked as (v) in the following table this information is
required to calculate the contribution margins. For simplicity none of the costs are classified
as mixed. Costs that could be mixed are classified as fixed for the purposes of the
calculations in this case.
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To calculate the contribution margins based on billings only the variable costs will be pro-
rata’d (shared proportionally) between the block funding (“other revenue” and “government
subsidies”) and the “billings revenue”.
As is the case with the majority of small primary healthcare businesses Get Better Medical
Unit Trust prepares a budget based on last year’s actuals (2022) with a predicted 5%
increase in revenues, keeping sales price constant for the three types of consultations 2022
and 2023, and a 5% increase on variable costs as the budget for this year (2023).
The management would like to evaluate the performance based on the three types of
consultation for the year 2023.
You are currently undertaking an internship at the accounting firm that has Get Better
Medical as its client. Sarah Furness, the partner in the accounting firm has asked you to
prepare the report that will include (1) the budget for 2023 year (2) the budgeted contribution
margin based on billings only (3) sales variance analysis including sales volume variance,
sales mix and sales quantity variance for the year 2023.
Your supervisor in the accounting firm has given you the following guidance on the steps you
need to take to compile the report.
1. Create a budget for the 2023 year based on 2022 actual results and increase of 5%
in both revenues and expenditures.
2. Adjust 2023 Budget for Billings based on service fees revenues (40% billings) and
include proportion of billings paid (60%) to contracted doctors as a variable operating
expense.
3. Adjust expenses proportionately between block funding and billing revenues and
prepare budgeted P&L based on block funding and billings. Create two columns one
for block funding revenues and proportion of costs and the other the P&L based on
billings which will have 100% of doctors’ payments allocated the remainder of costs
will be pro-rata between the block funding and billings P&L’s.
4. In the P&L based on billings remove fixed costs to calculate Budgeted Contribution
Margin P&L 2023 for billings column.
5. Calculate the number of each type of consultation that took place in the 2023 year
(short medium and long) and the budgeted number of consultations given the price
remained static. The number of short and medium consultations remain constant in
the 2022 and 2023 year.
6. Calculate the budgeted CM per each type of consultation and the overall average
budgeted contribution margin. (hint need to think about variable costs per minute)
7. Calculate the sales variances, do not round your answers during calculations in
spreadsheet but present your answers in the report to the dollar.
The company’s actual profit and loss data for the five years up to and including 2023 are
provided in the separate Excel File named Get Better Medical Solutions Data.
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Section 1. Budgeted Contribution Margin Profit and Loss 2023 (3 marks)
1.1 Present the budgeted P&L 2023 and Budgeted contribution margin P&L report for
2023 in the table below (ensure you provide a pdf of the excel columns prepared
according to the steps provided by your supervisor in the appendix).

Budgeted Profit
and loss 2023
Budgeted
Contribution margin
calculation for billings
only.

INCOME
Other revenue
Government subsidies
Service fees
Patient fees

LESS EXPENDITURE
Service Fees payments (V)
Accountancy fees (V)
Advertising (V)
Amortisation
Bank charges(V)
Borrowing expenses
Cleaning
Consultancy fees (V)
Computer expenses (V)
Depreciation
Donations (V)
Electricity (V)
Employee entitlements
Entertainment (V)
Filing fees
Fines and penalties
Insurance
Interest paid
Leasing charges

Legal expenses
Locum fees (V)
Low cost assets
Medical supplies (V)
Pip payments
Postage (V)
Printing and stationery (V)
Rent
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Repairs and maintenance (V)
Staff gifts
Staff training (V)
Staff amenities (V)
Subscriptions (V)
Superannuation contributions
Telephone (V)
Uniforms
Utilities
Wages
Waste disposal (V)
Website expenses
Workcover

Operating Income /
Contribution Margin

Section 2. Sales Variance Analysis (13 MARKS)
2.1 Analysis relating to the three different types of consultation (9 marks)
Prepare the following table that shows the sales-volume, sales-mix, and sales-quantity
variances for each of the three service lines and sales volume variance for the company as a
whole for the year 2023.

SVV SMV SQV
Consultations
Short
Medium
Long

For the company

Notes:
• All calculations should be performed using MS Excel. Do NOT round the numbers in
your calculations.
• While you should not round the numbers in your calculations, present the rounded
numbers in your report. For instance, total revenues can be rounded to the nearest
whole number (e.g., $1,234,567). Sales mix percentages can be rounded to two decimal
places (12.34%).
• All variance calculations should be done in terms of contribution margins.

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2.2 Interpretation based on your analysis (3 MARKS)
Based on the variances calculated, write three short paragraphs evaluating the sales
performance of each of the three service lines and the company as a whole.

2.3 Recommendation to Get Better Medical (1 MARK)
Provide a recommendation for improving profitability of Get Better Medical based on your
findings.

Section 3. Annotated Bibliography – Relevant Academic Article (3 MARKS)
In this section, you should find a relevant academic article and write a brief paragraph
suitable to be included in an annotated bibliography.
Refer to the library link: https://guides.library.uq.edu.au/ACCT3104. The link provides all the
information you need to complete this section.
When conducting your search of the literature, use Advanced search on the UQ library
website and follow the instructions below.
• Use the following search term: variance analysis health.
• Choose ‘articles’ for Content type.
• Choose ‘5 years’ for Published in the last.
• Only choose a peer-reviewed accounting article from an A Journal in the ABDC list.
In your paragraph for the annotated bibliography, include the following:
• Topic: What were they studying? This can be answered with a phrase or a few
words.
• Methods: What approach did they use? A few simple words should suffice to remind
you of the work they did, was it an experiment, survey, case study, educational case
etc.?
• Scope/study area: Where was the study conducted and with whom?
• Findings: What did the article you read contribute to the literature? This step is
critical because it tells the reader what was learned that was unknown before. When
you write this use your own words, so you do not accidently plagiarize the article.
You also need to provide a reference for the paper you found using the APA 7th style.

Presentation and readability (1 MARK)
See criteria in rubric.

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MARKING RUBRIC: Get Better Medical (Semester 2 2024 Case Study for ACCT3104)
Case Study Absence of Achievement (0%) Minimal / Developing (1-49%) Functional / Proficient (50-69%) Advanced (70-84%) Exceptional (85%-100%)
1. Budget Preparation (3)
Purpose: to calculate the relevant budgets for
sales variance analysis..
You have made no attempt
to provide an analysis.
You have prepared an
incomplete analysis with
many errors in calculation.
You have prepared a sound
analysis with some errors in
calculation.

You have prepared a
reasonably well developed
analysis with a few errors in
calculation.
You have prepared a
comprehensive and well
developed analysis with
minimal to no errors.
2. Sales Variance Analysis (13)
Purpose: to calculate the relevant metrics for
sales variance analysis and discuss and
evaluate the firm’s sales performance.
2.1 Analysis relating to the three service lines
2.2 Discussion of analysis
2.3 Recommendation based on analysis
You have made no attempt to
provide an analysis and
discussion relating to sales
variance analysis and no
recommendation.
You have prepared an
incomplete analysis and
discussion and
recommendation with
many errors relating to sales
variance analysis.
You have prepared a sound
analysis and discussion and
recommendation with some
errors relating to sales variance
analysis.

You have prepared a
reasonably well developed
analysis and discussion
and recommendation with a
few errors relating to sales
variance analysis.
You have prepared a
comprehensive and well
developed analysis and
discussion and
recommendation with
minimal to no errors relating
to sales variance analysis.
3. Annotated Bibliography (3)
Purpose: to find a peer reviewed academic
accounting article in an A journal on the ABDC list
published in the last 5 years using search terms
Variance Analysis Health and write a paragraph
for annotated bibliography and reference the
article.
You have made no attempt to
find an academic article.
You have found an article
that meets the criteria
provided but no attempt at
the annotated bibliography
with no referencing.
You have found an article that
meets the criteria provided and
made an attempt at the
annotated bibliography and
referencing with some
errors.
You have found an article
that meets the criteria and
prepared a reasonably
good annotated bibliography
and appropriate
referencing with minor
errors.
You have found an article that
meets the criteria and
prepared a well developed
annotated bibliography and
appropriate referencing
with no errors.
4. Presentation and readability (1)
The students have proof read their submission,
and presented it as a well-structured and
cohesive case.
Your case presentation and
readability are extremely poor.
Your case presentation and
readability are below average.
Your case presentation and
readability are satisfactory.
Your case presentation and
readability are above average.
Your case presentation and
readability are well above
average.