Departments Are Often Used as Cost Pools When Allocating Support

question 113

Multiple Choice

Departments are often used as cost pools when allocating support department costs because:

• A) Many organizations already accumulate costs by department
• B) Generally accepted accounting principles require it
• C) All departments have easily identifiable allocation bases
• D) Canadian income tax regulations require it

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Definitions:

Capitation

Payment mechanism in which a provider (e.g., health care network) receives a fixed amount of payment per enrollee.

Nursing Judgment

The critical thinking and decision-making process used by nurses to provide appropriate patient care.

Infusion Devices

Medical equipment used for delivering fluids, such as nutrients and medications, directly into a patient's bloodstream.

Automated

Systems or processes operated with minimal or no human intervention, often using electronic devices or software.