In allocating overhead costs, several different bases may be appropriate. Describe some of the cost and the appropriate units to use such as FTE, sq. footage, percentage of revenues, etc., that are NOT directly patient related. Every organization has overhead costs, so you all should have input here.© BrainMass Inc. brainmass.com November 30, 2021, 4:52 am ad1c9bdddf
What is needed here are cost drivers that are not related to patient activity. So, we do not want activities such as administering medications, cleaning beds, meals served, nursing hours and so forth as these all vary with patient activity (the more patients, the more these go up, right?).
What is a good cost driver or activity that makes costs go up and down but not because ...
Your tutorial includes 11 suggested allocation bases and tells you the costs that varying based on the activity mentioned.