Blue Cross and Blue Shield of Florida, Inc., developed a management information system (MIS) that provides timely and accurate reports on products, customers, and business segments, as well as information on internal services. The system includes a four-step ROSA (Resource, Operational, Support, and Administrative) cost-allocation process. First, the costs of resources are assigned. Resource costs include the costs of services and supplies, such as telephone, printing, and postage. Second, the costs of operational centers are assigned. Operational centers, such as claims and customer service, serve specific external users. Third, the costs of support centers are assigned. Support centers primarily support internal users and include medical affairs and claims management. Finally, the costs of administrative centers are assigned.

Administrative centers benefit the whole organization or have no specific user group; they include human resources and employee communications. Accounting personnel and the managers of the centers work together to develop appropriate cost drivers. Each manager is responsible for supplying accurate cost data for cost-allocation purposes.

1. Compare the definition of the four ROSA cost types with this chapter’s definition of a service center. Do all types of ROSA costs qualify as service center costs?

2. In what ways does the MIS at Blue Cross and Blue Shield of Florida benefit the centers’ managers?

3. What benefits or opportunities do reports containing ROSA cost-allocation information provide the organization’s managers?