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Assignment On Apollo Hospital VS Square Hospital: Mr. Mohammed Naveed Siddiquee
Assignment On Apollo Hospital VS Square Hospital: Mr. Mohammed Naveed Siddiquee
Submitted To
Mr. Mohammed Naveed Siddiquee
Lecture, Department of Accounting
Independent University, Bangladesh (IUB)
Corse Title: Accounting Information System
Section: 01
Course Id: 441
Submitted By
Nure Maksuda Shakila
Id Number: 1630221
Date of Submission: 7TH APRIL 2020
Table of Contents
Apollo Hospital
Apollo hospital is a private hospital in Bangladesh and part of the Apollo hospital Chennai,
Kolkata, Delhi, Hyderabad, Mumbai, Ahmedabad, Bengaluru. .Apollo hospital only provide
medical service but they have others branch out of Bangladesh and follow WHO healthcare
standard. Apollo hospital in Dhaka started its operation on April 16, 2005 with a mission to
provide high quality international standard healthcare that will meet the needs and exceed the
expectations of the people of Bangladesh. The hospital is the first and only in Bangladesh to get
accredited by the joint commission international accredited. Apollo hospital was fined 1.6
million for having contraband pharmaceuticals in September 2015.then in December 2015
Apollo hospital started online appointment and payment service too. They also do a lot of PR
activities. There are write-ups about them in newspapers on regular basis. Apollo hospital
provide lot of facilities world class lab medicine facility and external quality control program
with (BOI,RAD,USA),Appointment, Master health check ,Fax ,Emergency contact
number(hotline and ambulance).However, in recent days their Facebook page promotional
activities have increased in significant number. Basically online process part of E-commerce and
now Apollo Hospital becoming Evercare Hospital.
Square Hospital
Square hospital is a private hospital in Dhaka, Bangladesh.it is one of high-end private hospital
in Bangladesh, the other being Apollo hospital Dhaka and united hospital. Tapan Chowdhury is
the managing director of the hospital. Ensure the best healthcare service comprise of Professional
(clinical) service excellence with the outstanding personal service. Square hospital was founds
on 16 December 2006 by Samson h Chowdhury of square group. Square manufacturing their
medicine and provide own hospital and others pharma, hospitals.
Square hospital always use online services likes payment systems, consult by doctors, hotline.
Online basically a part of e-commerce. In recent days their Facebook page promotional activities
have increased in significant number.
Apollo Hospital is provide healthcare services to patients Heart, Orthopedics, Cancer,
Transplants, ICU Emergency Service.
Square Hospital is provide Square Child Development Centre, Diabetes & Endocrinology
Centre, Emergency Centre, Neuroscience and Intensive Care Centre.
Apollo And hospital are sales their services to customers or patients.
Revenue Cycle
Economic Enterprise, both for profit and not for profit generate revenues through business
processes that constitute their revenue cycle. In this form, the revenue cycle is the direct
exchange of finished goods or services for cash in a single transaction between a seller and
buyer.
As Apollo Hospital and Square Hospital are always part of e-commerce in Bangladesh so they
use AIS (Accounting Information system) for their revenue cycle activities.
View of Technological innovation in AIS as a continuum with automation at the end and
reengineering at the other. Automation basically involves using technology to improve the
efficiency and effectiveness. And on the other hand reengineering involves radically rethinking
the business process.
• Service is only available for products which are shown in available on their website.
• Only one product can be booked in one order
• Orders that are paid cannot be cancelled
After the order place from the customer, the sales department release copies of the sale order to
the billing, warehouse and shipping departments.
Warehouse department clerk receives the stocks release copy of the sales order and uses this to
pick the products. And then inventory and stock release sent to the Shipping Department.
The shipping clerk reconciles the products received from the warehouse with the shipping notice.
A bill of leading is prepared and the product are packaged and shipped to the customer.
After that updated the sales order file, update program post and update accounts Receivable
subsidiary ledger.
Expenditure Cycle
We know a manufacturing company’s expenditure cycle involves ordering and receiving goods
and services. These goods can be inventory that the company plans to resell or internal supplies
to keep the business running smoothly. After ordering and receiving goods, the company must
approve vendor invoices and disburse cash payments square hospital uses AIS in the expenditure
cycle. As they are daily necessary production companies so at first, they order or collect their
raw materials to the suppliers. So, the purchasing department employee will approve the request,
choose a suitable supplier and create a purchase order .square hospital’ require a purchasing
agent to buy from an approved list vendor and require supervisor authorization for purchases. By
using AIS Square can order its materials automatically to the suppliers.
Organized by the purchasing department. After placing the order Apollo and Square hospital
receive and stores its purchase. As it is a computer-based system the receiving order notifies to
the receiving department. Then the receiving department updates the database of inventory. As
all the records are updated in the database so there is no scope of stealing the products. After
updating the inventory, the company’s account payable department has to approve the vendors'
invoice. By using AIS check all the record in the database. If everything is ok then AIS
automatically creates an invoice. To prevent the possibility of Apollo and Square hospitals are
generally have a different department or a different employee disbursing cash for vendor
invoices. However, Apollo and Square hospitals are using AIS so all the cash disbursement
system is done automatically. In the above discussion, my findings are:
1. Apollo and Square hospitals can control its inventory management effectively and efficiently.
2. Apollo and Square can analyze and manage the cost easily.
3. Also they prepare financial statement accurately.
Conversion cycle
The conversion cycle consists of both physical and information activities related to
manufacturing products for sale. The central role of the conversion cycle is interactions with
other business cycles. Production is triggered by customer orders from the revenue cycle and by
sales forecasts from marketing. These inputs are used to set up production target and prepare a
plan, which drives production activities. Purchase requisitions for the raw materials needed to
meet production objectives are sent to the purchase procedures. Labor used in production is
transmitted to the payroll system. Manufacturing costs associated with intermediate work-in-
process and finished goods are sent to the financial reporting system and general ledger.
Depending on the type of product being manufactured, the Company will employ Batch
Processing. Batch processing produces groups (batches) of product. Each item in the batch is
similar and requires the same raw materials and operations. This is the most common method of
production and is used to manufacture products such the product. When the task is complete at a
particular work center, the supervisor or other authorized person signs to the move ticket, which
authorizes the batch to proceed to the next work center. Work centers also fulfill an important
role in recording labor time costs. An objective of inventory control is to minimize total
inventory cost while ensuring that adequate inventories exist to meet current demand. A
commonly used inventory model is the economic order quantity (EOQ) MODEL. Computer
aided manufacturing is the use of computers to assist the manufacturing process. The CAM
system monitors and controls the production process and routing of products through the cell.
Benefits from deploying a CAM technology include improved process productivity, improved
cost and time estimates, improved process monitoring and improved process quality.
PART-B
QUESTION 02
Why Square Hospital management should use Accounting Information System (AIS)
Because AIS stores and provides such appreciated business material, reliability is vitally
important. The American Institute of CPAs (AICPA) and Canadian Institute of Chartered
Accountants (CICA) have recognized five basic principles important to AIS reliability:
Security - Access to the framework and its information is controlled and maintaining
properly, access in accountant department only financial and accounting department
employees.
Customer billing statement- If hospital use AIS they benefiting by record of customer
billing statement, recording the daily transaction(transaction process system)