Mrs. Shepard was a patient at Citizens Hospital, where she was admitted complaining of stomach...

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Accounting

Mrs. Shepard was a patient at Citizens Hospital, where she was admitted complaining of stomach pains. Tests revealed that Mrs. Shepard had an inflamed appendix, and surgery was indicated. Once the surgery was completed, Mrs. Shepard spent one day recovering in the hospital. The surgery was routine and there were no complications; discharge was as planned. Using the following four departments as an example, explain how the various cost apportionment methods would work:

Human ResourcesSurgery

HousekeepingLaboratory

Explain the advantages and disadvantages of each cost allocation or apportionment method as they relate to the case.

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