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Cost prices of DBCs are calculated using a cost allocation system that results in cost prices for intermediate products.
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A heuristic technique to satisfy horizontal fragmentation and allocation using a cost model to minimize the total cost of distribution is developed.
To distribute common and shared costs to a service, a cost allocation procedure is used.
20 The hospital uses a cost accounting system based on full-costing allocation that allows for assessing direct costs derived from clinical activity.
A proportion of joint costs each year was allocated to the CI and FI interventions using joint cost allocation rules, which were arrived at through discussion with key informants [ 6].
ABC allocates indirect costs to services using a multistep allocation procedure on the basis of activity consumption.
With regard to the method used for cost allocation, it is important to point out two limitations in our study.
This figure depicts aggregate time estimates on activities common to all staff, which were used for support cost allocation; time allocation of specific staff on specific activities was used in ingredient cost estimates (Additional file 1).
Randomisation was conducted using a centralised allocation process.
As indicated in Figure 2, a selection of the service drivers is used in the cost allocation calculator that is described in this section.
From these data, the average time spent on each activity by personnel was calculated per facility and used as the cost allocation basis.
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