Question

Why is capital cost important component of a healthcare organizational cost?

Answer 1

Hello Sir/Mam,

Capital Cost is the cost fixed and one time investment in any assets like building, furniture, Machinery, equipment etc.

In the healthcare organization the mainly they are dependent on their equipment and Machinery like MRI Machine, CT Scan Machine, X-ray Machine etc. therefore it is very important for a healthcare organization to record and maintenance of these fixed assets.

The healthcare organization company have no any other assets except these fixed assets because they are in profession service, hence it is very important to keep proper and safe their capital goods.

These assets are very highly costly machines therefore it necessary to keep extra care for that and if we see it from accounting perspective then it also play a important role because here is a huge amount of depreciation have to record.

I hope this clear your doubt.

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