English to Russian Bus/Financial Accounting COSTING OF HEALTH SERVICES FOR PROVIDER PAYMENT(MANUAL)

An ***allocation statistic*** is the actual number derived from the allocation base that is used to allocate costs to a department. For any ***allocation statistic***, the denominator is the total quantity of resources (the value of the base) and the numerator is the quantity of resources consumed by a department. The following example illustrates how to calculate an allocation statistic using floor area as the allocation base for electricity cost.

For example, the ideal way to apportion the cost of laundry done by the Laundry department to other departments may be to use the number of pieces of laundry or kilograms of laundry washed as an ***allocation statistic*** for each department.

The number of staff in each department is divided by the total staff in the hospital to get to a department share, which is the ****allocation statistic****. For example, the allocation statistic for the Transport department is 0.014830508 (about 1.5%), which is calculated by dividing the 3.5 Transport staff by the 236 total hospital staff. Costing teams should avoid using the rounding function in Microsoft Excel because the full cost will not be allocated and thus the ****allocation statistic**** will not be 0.015. Although the hospital actually has 250 total staff, the 14 Administration department staff are subtracted from the total because that department's resources must be excluded from the calculation of the allocation statistics. Thus, the Transport department receives about $1,960 of the Administration department's cost, or (3.5 4 236) x$132,141.

TIA!