When estimating the cost of the laundry department in a hospital,which of the following cost drivers should be used?
A) number of patients
B) number of patients times the length of stay per patient
C) number of patients in intensive care and critical care
D) number of pounds of laundry

Question

Quizplus · Accepted Answer

The cost of the laundry department in a hospital should be estimated based on the number of pounds of laundry. This is the most direct and relevant cost driver for the laundry department, as the department's costs are directly related to the amount of laundry that needs to be washed, dried, and folded. The number of patients, the length of stay per patient, and the number of patients in intensive care and critical care may be useful for estimating other costs in the hospital, but they are not as relevant for estimating the cost of the laundry department.

When Estimating the Cost of the Laundry Department in a Hospital,which