Management control: The acquisition cost of equipment and controls in a hospital unit

• Published in: Contabilidad y negocios Vol. 19; no. 37; pp. 58 - 77
• Main Authors: Pinheiro de Sá, Luciano, Parreira Guerra, Otávio, Moreira Paradela, Israel, Coelho Marson, Luciana Sousa
• Format: Journal Article
• Language: English; Spanish
• Published: Pontificia Universidad Católica del Perú 16-05-2024
• Subjects: Acquisition cost; Complex organizations; Contingency factors; Fixed assets; Hospital; Management control
• ISSN: 1992-1896; 2221-724X
• DOI: 10.18800/contabilidad.202401.003

The acquisition cost of every equipment is connected to the complexity degree of the operation, leading to possible differences among the assigned controls. Variations in control practices are likely to be more complex depending on the organizations, as in the case of hospital units. The paper aimed to control a hospital unit based on the asset acquisition cost and considering contingency factors. Management control is understood as a set of activities and practices to guarantee the enforcement of management plans (Anthony & Govindarajan, 2008). A single-case study qualitative approach was used and data was collected from semi-structured interviews. The object was a hospital in Brazil. The asset acquisition cost did not seem to interfere with the control practices adopted by the hospital unit. In this manner, the organization assets are recorded and controlled uniformly. In spite of a formal and structured internal control, an asset having a higher or lower acquisition cost does not directly interfere with control.