Response to the following problem:
Activity-based costing in a health care organization Riverdale Bone and Joint Surgery specializes in treating injuries related to bones and joints, as well as surgeries such as knee replacements and hip replacements. In addition to performing surgeries, Riverdale offers post-operation treatment. Riverdale would like to develop an activity-based costing system in order to obtain accurate costs regarding the variety of patients that it serves.
Required :
(a) What resource units would you advise using to build an activity-based costing system for Riverdale?
(b) After identifying the resource units, what other steps are required to determine the cost of a particular patient?