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Under this system the traceable supply costs are assigned directly to the two types of treatment. And also currently both the treatments seem profitable. Due to this David Thomas, the controller of Western Dialysis has recognized two major
issues: First, the procedure currently being used to assign common expenses may not be correctly presenting the underlying use of the common resources by two different procedures. Secondly, David has also recognized the need for process improvement in order to obtain a better understanding of the costs, to make better decisions about the profitability of the two procedures, HD and PD at Western Dialysis...
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