Advanced Management Accounting, R. S. Kaplan, A. A. Atkinson,
International Edition, Third Edition, Prentice Hall International, Inc, 1998

p. 116.

Answer all four requirements of the case study. In addition to these requirements you are recommended
to exhibit your ability to:
1) Critically evaluate the advantages and drawbacks of traditional costing systems.
2) Compare activity-based costing systems to traditional costing systems.
3) Analyze the circumstances and provide arguments with solid numbered reasoning to support
appropriateness of any of the two systems.
4) Foresee and critically assess the implications of moving from one system to another.
Table 1
Clinic income statement Total HD PD
Revenues
Number of patients 164 102 62
Number of treatments 34 967 14 343 20 624
Total revenue $3 006 775,0 $1 860 287,0 $1 146 488,0
Supply costs......

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