Question: Again, using Table 18-6 and Table 18-7, allocate the indirect expenses based on the squarefootage after the expansion. - (Routine Care =50,000SqFt and Orthopedics =25,000SqFt
Again, using Table 18-6 and Table 18-7, allocate the indirect expenses based on the squarefootage after the expansion. - (Routine Care =50,000SqFt and Orthopedics =25,000SqFt ). Now interpret the results from question 3 . Is this a "fair" allocation method? Why or why not? out of the two cost allocation methods We Care Medical Center utilizes, which do you think is the most accurate for both departments? Why? Understanding multiple cost allocation methods exist, what are important factors to take into consideration when evaluating which method should be used
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