CA Intermediate · Cost and Management Accounting · Service Costing
Which of the following is a typical cost unit used for a hospital's in-patient ward under service costing?
The patient-day is the usual cost unit for a hospital in-patient ward, because the service provided is bed occupancy and care for each day. Tonne-kilometre belongs to goods transport, and quintal and machine hour are production measures, so they do not fit a hospital.
- APatient-dayCorrect
- BTonne-kilometre
- CQuintal
- DMachine hour
Explanation
Hospitals measure the service of in-patient wards by bed occupancy, so the patient-day is the standard cost unit. Tonne-kilometre is used for goods transport, while quintal and machine hour are material or production measures and not hospital service units.
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