Services for revenue as cost driver for financial service

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Reference no: EM13987815

Assume that the hospital uses salary dollars as the cost driver for General Administration, housekeeping labor hours as the cost driver for Facilities, and patient in services for revenue as the cost driver for Financial Services.

a. Allocate the hospital’s overhead cost to the patient services department.

b. Which of the two cost driver schemes is better? Explain your answer.

Reference no: EM13987815

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