Discuss what is Activity Based Costing and where it applies to the following case.

Suppose you work for the Hospital del Pueblo and you have been tasked with identifying activities associated with caring for patients. In addition to identifying the activities, identify possible costs associated with the activity (read the example, DO NOT use monetary amounts, neither real nor fictitious), and indicate what the cost basis or causal could be to assign the cost to each activity.

Remember that the cost objective is specifically the patients. identify the activities (usually verbally: open, issue, process, send ...) relevant for the hospital administration to determine the cost of caring for a patient in the maternity unit, the costs of these activities and the cause of costs of these activities (must be expressed in a quantifiable way = can be counted).

Make table like the one below and provide at least 8 additional activities.

1. Activity

2. Examples of possible costs of the activity

3. Causal (generator) of cost

Example 1

1.1. Register the patient

1.2 Cost of office supplies, depreciation of computer and printer, salary of the personnel responsible for the registration task.

1.3 Number of registered patients.

2.

3.

4.

5.

6.

7.

8.

9.

10.