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

Which item is best treated as a direct cost of a particular patient in a hospital's costing system?

The cost of an implant used in a specific patient's surgery is a direct patient cost because it can be traced to that patient without apportionment. Administration salaries, building depreciation and corridor electricity are shared overheads that must be allocated across many patients.

  1. AHospital administration salaries
  2. BCost of an implant used in that patient's surgeryCorrect
  3. CDepreciation on the hospital building
  4. DElectricity for the common corridors

Explanation

An implant is identifiable with a specific patient and traced without apportionment, so it is direct. Administration, building depreciation and corridor electricity are common overheads shared across patients and need apportionment.

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