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6.3 Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration and financial services is patient services
6.3 Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration and financial services is patient services revenue, while the cost driver for facilities is space utilization. A: what are the appropriate allocation rate ?
B; use an allocated table similar to exhibit to 6.7 to allocated to hospital overhead cost to the patient services department?
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