Healthcare Applications: A Casebook in Accounting and Financial Management 3. What advantage does the RVU approach have over average costing? 1. Calculate average unit labor cost. 2. Calculate RVUs per procedure by dividing unit labor cost by average unit labor cost. 3. Calculate total RVUs by multiplying RVUs per procedure by estimated volume. 4. Calculate total cost by multiplying estimated volume by labor cost per procedure. 5. Calculate RVU unit cost by dividing total cost by total RVUs. 6. Calculate per-procedure cost by multiplying RVU cost by number of RVUs for each procedure. Healthcare Applications: A Casebook in Accounting and Financial Management 3. What advantage does the RVU approach have over average costing? 1. Calculate average unit labor cost. 2. Calculate RVUs per procedure by dividing unit labor cost by average unit labor cost. 3. Calculate total RVUs by multiplying RVUs per procedure by estimated volume. 4. Calculate total cost by multiplying estimated volume by labor cost per procedure. 5. Calculate RVU unit cost by dividing total cost by total RVUs. 6. Calculate per-procedure cost by multiplying RVU cost by number of RVUs for each procedure