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CORRECTIONS

Chapter 3Chapter 14Chapter 16


 

CHAPTER 14

PLEASE NOTE: 

THE SECOND EXCEL PROBLEM IN THE TEXT HAS AN ERROR IN THE CONSTRAINTS FOR PART A AND PART B!


Excel Problem #2.
 For both Part A and B the last two constraints should read: 
% of Total Patients DRG 1-3 <= 50% 
% of Total Patients DRG 1-3 >= 10%
 In the text, the greater then and less then signs were reversed. 

CHAPTER 16
Correction


The formula for Residual Income in Exhibit 16 - 3 Primary Evaluation Alternatives should read: 

 
Residual Income (RI) = Net Income - (investment x minimum desired return)
Exhibit 16 - 3 is located on Page 346 in the Essentials text and on Page 676 in the CostAccounting text 


Last Updated 5/18/99