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Advanced Cost Management in Healthcare Operations

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Advanced Cost Management in Healthcare Operations

HSA 525 Assignment 2 Cost Behaviors and Allocation

1. WHAT IS THE VALUE OF THE COST POOL?

100,000

2. WHAT IS THE ALLOCATION RATE IF:

A. Patient services revenue is used as the cost driver?

100,000/5,000,000=$0.02 per patient service revenue

B. HOURS OF HOUSKEEPING SERVICES IS USED AS THE COST DRIVER?

$100,000/5000=$20 per housekeeping hr.

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