ABC Hospital is analyzing its patient care costs using different costing methods:

• Requirements:
  • Calculate the Marginal Cost per additional patient admitted:
    • Variable Costs: $2,000
    • Fixed Costs: $500,000
• Apply Activity-Based Costing to allocate nursing and administrative costs.
• Evaluate the benefits of Marginal Cost Accounting in managing emergency room operations.
• Discuss how Standard Cost Accounting could improve cost management in outpatient services.

Marginal Cost Calculation:

Category	Amount ($)
Variable Costs	$2,000
Fixed Costs	$500,000
Total Cost	$502,000