The Metropolis Health System's Rehabilitation and Wellness Center offers outpatient therapy and...

Question:

The Metropolis Health System's Rehabilitation and Wellness Center offers outpatient therapy and return-to-work services plus cardiac and pulmonary rehabilitation to get people back to a normal way of living. The Rehabilitation and Wellness Center expenses include the following:

Nursing Salaries

Physical Therapist Salaries

Occupational Therapist Salaries

Cardiac Rehab Salaries

Pulmonary Rehab Salaries

Patient Education Coordinator Salary

Nursing Supplies

Physical Therapist Supplies

Occupational Therapist Supplies

Cardiac Rehab Supplies

Pulmonary Rehab Supplies

Training Supplies

Clerical Office Supplies

Employee Education Required

Decide how many cost centers should be used for the above expenses at the Rehabilitation and Wellness Center.

Set up a worksheet with individual columns across the top for the cost centers you have chosen.

For each of the expenses listed above, indicate to which of your cost centers it should be assigned.

ICost Centers and Cost Allocation

Cost centers are groups of common activities within an organizational unit that incur costs to the business, but do not contribute directly to revenue and profit generation.

Answer and Explanation:

The table below gives the natural cost centers, and the activity costs that should be included in each of them:

Nursing Physical Therapy Occupational Therapy Cardiac Rehab Pulmonary Rehab Patient Education Administrative
Nursing Salaries Physical Therapist Salaries Occupational Therapist Salaries Cardiac Rehab Salaries Pulmonary Rehab Salaries Patient Education Coordinator Salary Employee Education
Nursing Supplies Physical Therapist Supplies Occupational Therapist Supplies Cardiac Rehab Supplies Pulmonary Rehab Supplies Training Supplies Clerical Office Supplies

Learn more about this topic:

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The Role of Cost Accounting in Management

from NYSTCE Business and Marketing (063): Practice and Study Guide

Chapter 14 / Lesson 9
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