You are working in a hospital in the accounting department and have heard about different costing systems. Answer the following questions to help support your determination.

1. Explain the difference between the following costing methods: throughput costing, variable costing, absorption costing and full costing.
2. You have seen that the hospital has been using both the direct method and stepdown methods. Compare and contrast these two methods.
3. When you are done with part b, you seem to think this sounds like what you learned in college about activity-based costing. Compare and contrast them.
4. You have also heard that the reciprocal method may be better than all the others. Explain the reciprocal method, especially in contrast to the other methods. Would you recommend the use of the reciprocal method?