Asked by Gurwinder Bhullar on May 27, 2024
Verified
Which of the following activity bases would be the most appropriate for food costs of a hospital?
A) number of nurses scheduled to work
B) number of MRIs taken
C) number of patients who stay in the hospital
D) quantity of prescriptions filled
Activity Bases
Measures that assign costs to cost objects based on their use of activities; used in activity-based costing.
- Acquire insight into how cost responds to adjustments in production and sales amounts.
- Apply concepts of cost behavior to real-world situations.
Verified Answer
ZK
Zybrea KnightJun 01, 2024
Final Answer :
C
Explanation :
Food costs are directly related to the number of patients in the hospital. Therefore, the most appropriate activity base would be the number of patients who stay in the hospital.
Learning Objectives
- Acquire insight into how cost responds to adjustments in production and sales amounts.
- Apply concepts of cost behavior to real-world situations.