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Gentiva Health Services - Essay Example
Finance & Accounting
Pages 3 (753 words)
Gentiva Health Services assignment of submission Introduction It is the quest of every company to cut down expenses and raise the level of revenue accruing from daily activities. Gentiva Health Services is not an exception to this rule…
This would ensure that the activities of the company remain profitable both in the long run and in the short run. The company recorded a decrease in revenue in 2011. Previously, the company has made several acquisitions and dispositions. This could have been one of the contributing factors to this loss among other factors. This paper investigates the methods of costing used in the company and explores the implication of employing differential costing in the company. The company employs different techniques in cost management. The acquisition of tax information is done through periodical reviews of company assets. The company analyses its data and prepares quarterly reports every year. As a way of managing its operational costs, the company has sold several of its branches (U.S. Securities and Exchange Commission, n.d). New assets have also been acquired as a way of expanding business and risk diversification. This approach is useful since the assets bought have high chances of appreciating in value, leading to a stable business during a long period of time. The assets base also provides more collateral required by financial institutions before they can give out loans. Gentiva’s ability to acquire loans for expanding its activities has, therefore, been enhanced. The change brought about by the new acquisitions and dispositions implies a change in the management structure. ...
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