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CMA Intermediate · Cost Accounting · Operating Costing - Transport, Hotel and Healthcare

A 50-bed nursing home in Pune operates for 30 days in a month. Average occupancy is 80%. Total in-patient ward costs for the month are Rs 4,80,000. What is the cost per occupied patient-day?

Occupied patient-days equal 50 beds times 30 days times 80 percent occupancy, which is 1,200. Dividing total ward cost of Rs 4,80,000 by 1,200 gives Rs 400 per occupied patient-day. Using available bed-days of 1,500 would wrongly give Rs 320.

  1. ARs 320Correct
  2. BRs 400
  3. CRs 200
  4. DRs 256

Explanation

Occupied patient-days = 50 x 30 x 80% = 1,200. Cost per patient-day = 4,80,000 / 1,200 = Rs 400. Wait: 4,80,000/1,200 = 400, so the correct figure is Rs 400.

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