CMA Foundation · Fundamentals of Financial and Cost Accounting · Cost, Cost Centre, Cost Unit and Cost Drivers
A cost accountant at a hospital in Pune wants a unit that reflects the service actually delivered to patients in the wards. Which of the following is the most suitable cost unit for the ward services?
The patient-day is the most suitable cost unit for hospital ward services because it measures the service actually delivered, each patient staying one day. Doctors, buildings and departments are inputs or cost centres, not units in which output is measured.
- APatient-dayCorrect
- BNumber of doctors
- CHospital building
- DNumber of departments
Explanation
Ward services are consumed per patient per day of stay, so the patient-day is the standard measure of output used as the cost unit. The other options are resources or locations, not units of service output.
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