To allocate these costs would it be better to use patient revenues or the number of bills generated?Explain.

Cost Allocation

Review the below question and answer with two opinions.
Opinion 1
Opinion 2

Indirect costs must be allocated to assign them to activities that caused them to be incurred. A significant indirect cost in Health Services organizations is the cost of Financial Services. To allocate these costs would it be better to use patient revenues or the number of bills generated?

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