CA Intermediate · Cost and Management Accounting · Service Costing
Which of the following is the usual cost unit for a hospital's in-patient ward when costing its services?
The usual cost unit for a hospital in-patient ward is the patient-day, also called the bed-day. Service costing needs a unit that measures the service delivered, and the number of days patients stay in the ward reflects that. Kilometres and tonne-kilometres suit transport, not hospitals.
- APatient-dayCorrect
- BKilometre run
- CTonne-kilometre
- DMachine hour
Explanation
Service costing uses a cost unit that suits the service. For in-patient wards the standard composite unit is the patient-day (bed-day). Kilometre, tonne-kilometre and machine hour belong to transport or manufacturing contexts.
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