How were cost centers determined


Stanley Children's Hospital reported an average cost per discharge of $6,500 for the quarter, with 300 discharges and an average revenue of $5,900 per discharge. What was Stanley's Revenue to Cost per Discharge ratio?

  1. What methods of cost allocation were used?
  2. How were cost centers determined?
  3. How would fixed and variable costing differ in this situation?

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Accounting Basics: How were cost centers determined
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