The Study on the Cost Analysis Based on ABC System in Clinical Laboratory

Abstract

The main purpose of this study is to compare the traditional cost system and ABC(Activity Based Cost) system of clinical laboratory department in a hospital. The study subject was 296 services in clinical laboratory from March, 1997 to August, 1997.

In a new costing system, costs for a lab test consist of direct cost element, activity elements included direct cost element and indirect cost allocated based on test volumes.

The major findings of this research were as follows.

1. In the application of ABC system, total cost was analyzed as follows. Direct cost was 39.3% of total cost. Activity cost and allocation were 20.9% and 39.8%, respectively.

The results of analysis to use traditional cost system were as follows. Direct cost was 39.3% and it was as same as the result of direct cost of ABC system. Indirect cost was 60.7%.

2. Activities of clinical laboratory of subject hospital were registration, pre-test operation, test, test result handling, delivery, culture, post-test operation, technical support, management support, and educational support.

3. The differences of the cost between ABC system and traditional cost system were analyzed. In the case of higher number of test case being carried out, the cost of ABC system was lower than the cost of traditional cost system. Otherwise in the case of lower number of test case being carried out, the results were reversed and the differences were increased. This results showed that major tests have not been appropriately evaluated, and effective management were needed in clinical laboratory.