Read the article "How Cleveland Clinic used TDABC to Improve Value".
You are the chief financial officer for St. Michael Hospital. A team from Cleveland Clinic made a presentation to the officers of Wadley regarding their experience with time-driven-activity-based costing (TDABC). Write a memo to the CEO describing the possible benefits or drawbacks of implementing this type of system at Wadley. Make a recommendation on whether Wadley should conduct a pilot project to
explore the differences between TDABC and their current costing system.
Your report should be a minimum of 2 pages in memorandum form. Docstoc.com gives instructions on how to write a memo and other business correspondence. Memo templates are also available in Word (while in Word click on F1 and search for memo). Always start with an introduction to the topic of the memo and a little background. When using a template, delete any line items such as CC you are not using.
The memo must include the following components:
1) Identify the problem of opportunity. (This is true even if you have discussed the topic with the person you are sending the memo to).
2) Compare alternatives using financial and non-financial information. Financial information does not need to include actual dollar amounts, it could be savings etc.
3) Develop and present an argument.
4) Formulate a recommendation. Consider implications and consequences of the recommendation.