The Key Advantage of Activity-Based Costing Is

question 22

Multiple Choice

The key advantage of activity-based costing is:

• A) workload is determined based on the required hours of nursing care.
• B) it reflects what it costs to provide services and identifies why costs were incurred.
• C) data can be used in constructing a personnel budget because it is linked to the volume indicator of patient days.
• D) the judgment of an expert nurse clinician must override an empirical system and be based on patient's needs in real time.

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Definitions:

Understand Obligations

Recognizing and comprehending the duties and responsibilities that are part of an agreement or contract.

Capacity

The legal ability or competency of a person or entity to enter into binding contracts or perform certain acts.

Illegal Clause

A provision in a contract that is prohibited by law and therefore unenforceable.

Sever

To cut off or divide property interests or legal relationships.