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    Question

    ABC Ltd, is in the medicine business and is now setting

    up a hospital. Which of the following is the most appropriate cost unit that can be used for the hospital by the company?  
    A Per patient Correct Answer Incorrect Answer
    B Per day Correct Answer Incorrect Answer
    C Per surgery Correct Answer Incorrect Answer
    D Per bed-day Correct Answer Incorrect Answer
    E Per patient per doctor Correct Answer Incorrect Answer

    Solution

    Cost Unit is a  quantitative standard of measurement for cost, which can be based on units of product, service, or time .   A hospital primarily provides inpatient accommodation and medical care over time.   A cost unit for a hospital is most appropriately measured as a combination of a bed and the duration it is used, i.e., per bed-day. This unit reflects the service provided over time.    

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