Using articles from academic

or professional journals (use the Keizer Library) write an APA-style essay of no more than 2 pages where
you briefly discuss what Activity Based Costing is and where you apply it to the following case.

Suppose you work for the Hospital del Pueblo, and you have been tasked with identifying activities
associated with caring for patients. In addition to identifying the activities, identify possible costs
associated with the activity (read the example, DO NOT use monetary amounts, neither real nor
fictitious), and indicate what the cost basis or causal could be to assign the cost to each activity.

Remember that the cost objective is specifically the patients. They are required to read Chapter 17 of
the book (Activity-Based Costing) and identify the activities (usually verbally: open, issue, process,
ship ...) relevant for the hospital administration to determine the cost of attending a patient of the
maternity unit, the costs of these activities and the cause of costs of these activities (must be expressed
in a quantifiable way = that can be counted).

Prepare a table like the one below and provide at least 8 additional activities.

Exercise Example of possible costs of the Cost Cause (generator)

activity
1. Register the patient Cost of office supplies, Number of registered patients.
depreciation of computer and
printer, salary of the personnel
responsible for the registration
task.
2. Initial physical exam Material costs, depreciation of Number of exams performed.
equipment to take pressure,
weight, etc. salaries of the
nurse / responsible for this task.
3
4
5
6
7
8
9
10
REQUISITOS:

I. The initial response must have at least three paragraphs of at least 5 complete sentences each and
must contain a theoretical or conceptual component and a personal analysis component (It cannot be
exclusively citations from the textbook or other sources).

II. You must include in your citations (APA style) and references (in addition to the textbook, other
textbooks and the internet) at least two references from academic journals.

Book

Noreen, E.W., Brewer, P.C. & Garrison, R.H. (2020). Managerial Accounting for Managers. 5th edition.
978-1260696318

Chapter 3: Order Costing System Chapter

5: Activity-Based Costing