3. Use the accompanying Excel spreadsheet to calculate the costs and.docx

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3. Use the accompanying Excel spreadsheet to calculate the costs and profit margins of the three different office visits using i) the RCC method and ii) TDABC (Time-Driven Activity Based Costing) method. Report the costs and profits in a small table. What explains the difference in costs and profits using the two methods.**How to find calculationsUse the accompanying Excel worksheet to calculate the costs and margins of the three different office visits using:RCC methodThe Ratio-of-Cost-to-Charges Method calculates cost from the equation below:Actual Charge x RCC Ratio = RCC CostThe margin is then calculated using the following:Average Reimbursement -RCC Cost = RCC MarginThe results of these calculations are summarized below for each procedure.Medical Diagnosis Cost per patient visitActual ChargeRCC RatioRCC CostAverage reimbursementRCC MarginPlagiocephaly$ 35060%$ 210
224.00$ 14.00Neoplasm skin excision$ 35060%$ 210224.00$ 14.00Craniosynostosis$ 35060%$ 210224.00$ 14.00TDABC method

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