Relevant costs. Com Plex Hospital is trying to decide whether to add a new outpatient surgery to its wide mix of services. The surgery would be done in an existing OR and would require no remodeling. Com Plex's accountant, Mr. Id, has prepared a projected financial report showing a $25,000 loss for the service. He is therefore against the new service. However, Nurse Ego of surgery points out that the report allocates $75,000 of existing OR depreciation to the new service. "Alter," Ego said to Id, "your results." Id pointed out the tight financial pressures on hospitals and refused.

Answer rating: 100% (QA)

In this scenario the 75000 of existing Operating Room OR depreciation allocated to the new outpatien... View the full answer