One of the Primary Lessons of the Activity-Based Costing Project

question 13

Multiple Choice

One of the primary lessons of the activity-based costing project at Cleveland Clinic was

• A) Success requires mapping a large number of processes
• B) Accurate mapping of processes required personnel experienced in mapping and finance
• C) Healthcare costs can be reduced by identifying redundant activities
• D) All of the above were noted in the case

---

Definitions:

Flexible Budget

A flexible budget that varies with activity levels or volume, enabling more precise budgeting and analysis of discrepancies.

Facility Expenses

Costs associated with the physical management and maintenance of buildings or structures.

Tenant-Days

A metric used in the hospitality and rental industry to measure the total number of days that tenants occupy a rented space.

Planning Budget

A financial plan that outlines anticipated revenues, expenses, and resources over a specific period.