Skip to content

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

In the operating costing of a hospital, which of the following is the most appropriate cost unit for the in-patient ward service?

The patient-day, or occupied bed-day, is the most appropriate cost unit for in-patient ward service because the service is consumed per day of stay. Available bed capacity measures capacity rather than output, and inputs such as doctors or medicines do not measure the service delivered.

  1. APatient-day (bed-day occupied)Correct
  2. BBed available per year
  3. CNumber of doctors employed
  4. DNumber of medicines issued

Explanation

Ward services are consumed by patients for each day they stay, so the occupied patient-day is the usual composite cost unit. Available bed-days measure capacity, not service delivered, so it distorts the cost per unit. Doctors and medicines issued are inputs, not service units.

Did you get it right without looking?

One question tells you little. A timed set on Operating Costing - Transport, Hotel and Healthcare shows your real accuracy, how long you take and where you lose marks.

Practise Operating Costing - Transport, Hotel and HealthcareFree diagnostic mock

More Operating Costing - Transport, Hotel and Healthcare questions