Chapter 4, Problem 30P

1.

To determine

Calculate the daily rates of G M Clinic using unit-based costing approach assuming the cost of daily care are assigned using only patient days as the activity driver.

2.

To determine

Calculate the activity rates using the relevant activity drivers for all activities of G M Clinic.

 3.

To determine

Calculate the charge per patient day for each patient type by using the relevant activity rates of G M Clinic.

4.

To determine

Provide information on the additional information required to cost out a newly defined product called stay and treatment where the treatment is bypass surgery.

5.

To determine

Provide information on the value activity based cost provides in service industries.