Please use this identifier to cite or link to this item:
A Study on the Effect of Extra Depreciation Expense of Plant Expansion upon the Compensation System－A Nonprofit Hospital Case
nonprofit hospital,compensation system,business expansion,depreciation system,employee benefits,
|Publication Year :||2017|
Upon completing a new medical building with streamlined facilities, one of the most reputable hospitals in Taiwan expanded its service in the beginning of 2017. Due to the expansion, the hospital’s depreciation expense will increase by NT$ 270 million. However, the capacity of the new building and facilities is not fully employed in 2017, the first year of the business expansion. It is expected that the revenue generated by the first-year usage of the expansion will be far less than the depreciation, and result in a loss for the hospital. Because the hospital’s year-end bonus for the employees is decided by the sum of the net medical service revenue times 1.5% and the net income before tax times 15%, the newly increased depreciation of NT$ 270 million will unfairly lower down the net income before tax and hence significantly reduce the year-end bonus for the year of 2017. The thesis uses multiple linear regression analysis, among others, to explore the unfavorable effect of the first-year increased depreciation upon the amounts of net income before tax and year-end bonus. Two suggestions are raised in the thesis on how the hospital can mitigate the unfair influence of the increased depreciation in 2017 so that its year-end bonus can be fair and able to motivate its employees to strive for the hospital’s mission.
|Appears in Collections:||會計與管理決策組|
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.