MANAGERIAL ACCOUNTING ASSIGNMENT

Student name Registration number

1. Munasinghe I.A.E. ADBM-F-132166
2. DulangaB.A.I. Jayawardana ADBM-F-132283
3. Wickramarathna W.L. Imashi ADBM-F-132265
4. Mendis P. Kamila ADBM-F-132159
5. U.D.D. Sandaruwan ADBM-F-132229

ADVANCED DIPLOMA IN BUSINESS MANAGEMENT

NATIONAL INSTITUTE OF BUSINESS MANAGEMENT (13.2.2)

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Contents
INTRODUCTION TO THE COMPANY.................................................................................3
LANKA HOSPITALS PVT.LTD.........................................................................................3
STOCK.....................................................................................................................................5
STOCK MAINTAINING METHOD...................................................................................5
STOCK LEVELS.................................................................................................................5
PURCHASES...........................................................................................................................5
BUDGET..................................................................................................................................6
JOB COSTING.........................................................................................................................6
VARIANCE ANALYSIS.........................................................................................................7
BREAKEVEN POINT.............................................................................................................7
APPORTIONMENT OF OVERHEAD....................................................................................7
PROCESS COSTING...............................................................................................................7

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INTRODUCTION TO THE COMPANY

LANKA HOSPITALS PVT.LTD

Lanka hospitals have commenced their service in 2002 as a part of the chain of

Apollo Hospitals founded by the renowned Dr. Pratap C. Reddy in India. In the

purpose of providing best health care services to the Sri Lankans, and they have

became the 1st ranker in health care sector before they celibate their 10th anniversary.

Lanka hospital have strengths to perform their best such as hospital spread over
350,000 square feet with 7 acres of beautifully landscaped garden, 350-bed multi-
specialty tertiary care facility.

Their vision

“To be the foremost and preferred Private Healthcare Facility in the Country,
this will serve the Nation and her People to build a healthier community."

Their mission

"To maintain exceptional and compassionate quality while offering cost effective
healthcare solutions of international standards."

For our Managerial Accounting assignment we choose “Lanka hospitals” and our
objective is to describe about the USE OF MANAGERIAL ACCOUNTING
CONCEPEPTS at their company.

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STOCK
As this is a hospital most of the stocks they have is medicines and other sanitary
items.

STOCK MAINTAINING METHOD

They are using,

 FIFO method

As their medicine stock managing method. they can’t keep their stocks for longer
period because their stocks are medicines.

STOCK LEVELS
They are using stock maintaining methods such as

 Economic order quantity

 Minimum stock level
 Maximum stock level
 Lead time
 Reorder level

Because of them they said that they can manage their stocks productively.

PURCHASES
They are purchasing according to a purchasing project. This is included all the costs
regarding purchases.

They have purchasing process. the following diagram will describe about it .

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BUDGET
They are creating three main budgets.

They are,

1. Revenue
a. Short term budget (less than a year)
b. Midterm budget (1-5 years)
c. Long term budget(more than 5 years)
2. Expenditure budget
3. Cash budget

They are creating their budgets according to their strategies and according to their
organizational goals.

JOB COSTING
They are using job costing for special petitions. It included

 Pharmacy items
 Service
 Manufacturing cost
 Laboratory services
 Meal plans

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VARIANCE ANALYSIS

BREAKEVEN POINT

APPORTIONMENT OF OVERHEAD

PROCESS COSTING