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What are the advantages of the new methodology

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Problem 1: In the past, the medical center has aggregated all facilities costs and then allocated the total amount on the basis of square footage. This methodology assigns an average cost rate to each patient service department regardless of whether its space is new or old, prime or poor. The proposed allocation for the Dialysis Center, on the other hand, requires it to bear the true facilities costs of Its new space. What are the advantages and disadvantages of the new methodology? Do you support the new allocation scheme?

Reference no: EM132669653

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