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