Is a cost-benefit analysis applicable when making the choice

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Our illustration of costing at the service level used several approaches: CCR using charges, CCR using revenues, RVU, and ABC. Although the results among the methods varied by relatively small amounts, in other situations the variation could be much larger.

Problem 1: In theory, the choice of methods should reflect the method that best mimics the relationship between the each service and the amount of overhead resources consumed. Which method do you think is best? Is a cost-benefit analysis applicable when making the choice?

Reference no: EM132935678

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