Respond to the given questions:

Most hospitals use square footage to allocate housekeeping costs. The rationale, of course, is that a patient services department that is twice as big as another will require twice the expenditure of housekeeping resources. The advantage of this cost driver is that it is easy to measure and does not change very often.

The disadvantage of using square footage as the cost driver is that some patient services departments require more housekeeping support due to the nature of the service, even when similarly sized spaces are occupied. For example, emergency departments require more intense housekeeping services than do neonatal care units.

What do you think? Does square footage as a cost driver for housekeeping costs meet the characteristics of an effective cost driver? Why or why not?

Is there a better cost driver available for allocating housekeeping costs? If so, what is it?

Why would it be a more effective cost driver?

Describe how the new and improved cost driver would work.