Financial performance in a patient care unit Essay Assignment Paper
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Financial performance in a patient care unit Essay Assignment Paper
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I don’t feel this would be an appropriate cost driver to calculate employee bonuses for a Critical Care department if this was the only cost driver being used. Financial performance in a patient care unit is not going to be as dependent on a fixed cost such as square footage as it will be on services delivered or supplies utilized. Square footage, being more of a fixed cost would be looked at in the cost pool of support services and breaking down the individual costs of those services for each department. The housekeeping scenario used in the textbook is a good example of this. The cost driver that involves housekeeping in the example is, does a department 10,000 square feet of space use twice the amount of housekeeping services as a department with only 5,000 square feet of space. This in my opinion will not have an effect on employee bonuses as it will have been predetermined information and not significant to how well the department has performed day to day financially.
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