The Function of Management Accounting in hospital management—hospital budget and management control system—

Abstract

The purpose of this paper is to clarify the way of using budget as a main tool of management control system in the hospital where departmental costing system has already maintained with the aid of the case study. As a result of the case study, three features are clarified; to share the managerial sense with doctors and co-medicals, they put high value on explaining the budget and make them participate in the budgeting; the departmental revenue-and-cost calculation system was designed to reflect the inter-relational activity; behavioral performance evaluation based on non-accounting, qualitative data was regarded as important as the usual performance evaluation based on accounting, quantitative data.