Abstract

As the U.S. economy continues to shift from manufacturing to service-oriented jobs, students will benefit from exposure to realistic scenarios that service providers may experience. Andrew Ford, D.D.S. is based on a real-life situation facing many single-practitioner professional dental and medical practices. Many professional health care providers have little business experience or training and instead rely on bankers, accountants, and bookkeepers to record accounting entries and provide sound business advice. In this case, students assume the role of a friend/consultant called upon to help determine why the dental practice is not performing at the same level as similar practices. Students encounter a situation in which an overworked medical professional supposes that an employee might be embezzling money or there is some other problem the professional cannot identify, thereby causing low profitability. In this role, the student finds that the professionals accounting records are sparse, making it difficult to precisely evaluate the operation of the practice. The student is asked to analyze the provided information and make suggestions for improving the profitability of the practice. The case also provides students exposure to basic regression analysis a consultant might use to assess cost behavior. This learning case is appropriate for both undergraduate and graduate managerial accounting classes.

Full Text
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