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The Realities and Expectations of Calculating Government Service Costs: An Analysis of Jordanian Hospitals

Author

Listed:
  • Obiedah Mohammad Alqudah

    (Ph.D. Candidate in Accounting, Faculty of Business and Management, Universiti Sultan Zainal Abidin Terengganu, Malaysia)

  • Safrul Izani Mohd Salleh

    (Department of Accounting, Faculty of Business and Management, Universiti Sultan Zainal Abidin Terengganu, Malaysia,)

Abstract

The goal of this study is to look at how government service expenses are calculated and analysed in Jordanian hospitals to direct health spending in the hospitals of the ministry of health of Jordan for 2021. ABC systems encourage hospitals to use, improve, and evolve in order to save government spending. The theoretical analysis's most significant conclusions were that the process of computing service costs was wrong and did not rely on the cost accounting system of activities or others. Furthermore, the calculation technique has resulted in a significant disparity in the cost of calculating each service from one hospital to the next, proving the inadequacies of the calculation approach. The study indicates that the Health Activity-Based Costing System (ABC) be activated to monitor expenditures, especially medical and healthcare disposables, in order to decrease waste costs; that pay-outs on the system be linked to high involvement files; and that an inventory is conducted at the close of every year to guarantee that the stock fits actual spending.

Suggested Citation

  • Obiedah Mohammad Alqudah & Safrul Izani Mohd Salleh, 2023. "The Realities and Expectations of Calculating Government Service Costs: An Analysis of Jordanian Hospitals," International Journal of Economics and Financial Issues, Econjournals, vol. 13(1), pages 65-72, January.
    • Handle: RePEc:eco:journ1:2023-01-8
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    References listed on IDEAS

    as
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    2. Qianyun (Ivy) Huang, 2018. "Skylar, Inc.: Traditional Cost System vs. Activity-Based Cost System ¨C A Managerial Accounting Case Study," Applied Finance and Accounting, Redfame publishing, vol. 4(2), pages 55-66, August.
    3. C. Homburg & Julia Nasev & Philipp Plank, 2018. "The impact of cost allocation errors on price and product-mix decisions," Review of Quantitative Finance and Accounting, Springer, vol. 51(2), pages 497-527, August.
    4. Malika Igalla & Jurian Edelenbos & Ingmar van Meerkerk, 2020. "What explains the performance of community-based initiatives? Testing the impact of leadership, social capital, organizational capacity, and government support," Public Management Review, Taylor & Francis Journals, vol. 22(4), pages 602-632, April.
    5. Loayza,Norman V. & Pennings,Steven Michael, 2020. "Macroeconomic Policy in the Time of COVID-19 : A Primer for Developing Countries," Research and Policy Briefs 147291, The World Bank.
    6. Nabil Bashir Al-Halabi & Omar Fareed Shaqqour, 2018. "The Effect of Activity-Based Costing (ABC) on Managing the Efficiency of Performance in Jordanian Manufacturing Corporations – An Analytical Study," Accounting and Finance Research, Sciedu Press, vol. 7(1), pages 262-262, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Government service costs; Realities; Expectations; Hospitals; Jordan;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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