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CMA Final · Cost and Management Audit · Audit of Different Service Organisations

In the audit of a hospital as a service organisation, which of the following is the most appropriate cost unit commonly used to measure and control the cost of in-patient services?

The occupied bed-day is the usual cost unit for hospital in-patient services because it reflects the output of care delivered to patients. Purchases, headcount and floor area are inputs and do not measure service output, so they are unsuitable as the main cost unit.

  1. APer bed-day occupiedCorrect
  2. BPer rupee of drug purchased
  3. CPer employee on payroll
  4. DPer square metre of building

Explanation

Hospitals commonly use the occupied bed-day as the composite cost unit for in-patient services because it captures accommodation, nursing and routine care. The other options are inputs or resources, not service outputs, so they do not measure the cost of service delivered.

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