Key activity-based cost accounting formulas
Several key formulas help generate the financial data practices need to identify costs by CPT code. These include:
• Costs per unit of service:
Cost of patient care per unit
+ Cost of transcription per unit
+ Cost of collection per unit
= Per unit cost of consultation
• Direct costs (ex. appointment scheduling)
Time spent scheduling X compensation
Total hours worked
• Indirect costs
Activity cost pool = Per-unit activity cost
Activity volume
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