CA Intermediate · Cost and Management Accounting · Service Costing
Lifeline Hospital's ward incurs the following in a month: nursing staff Rs 1,80,000, ward consumables Rs 60,000, depreciation of equipment Rs 40,000 and allocated administration Rs 20,000. The ward has 20 beds, all available for 30 days, and the occupancy was 75%. Cost per occupied bed-day is:
Cost per occupied bed-day is about Rs 667. Total ward cost is Rs 3,00,000, and occupied bed-days are 450 (20 beds x 30 days x 75%), so dividing Rs 3,00,000 by 450 gives Rs 666.67.
- ARs 500
- BRs 600
- CRs 667Correct
- DRs 750
Explanation
Total cost = 180,000 + 60,000 + 40,000 + 20,000 = Rs 3,00,000. Bed-days available = 20 x 30 = 600; occupied = 600 x 75% = 450. Cost per occupied bed-day = 300,000/450 = Rs 666.67, about Rs 667. Rs 500 divides by the available bed-days (600).
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