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Square footage as a cost driver: Suppose you are the Critical Care department head at Mercy Hospital….

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Suppose you are the Critical Care department head at Mercy Hospital.  Your bonus is dependent upon good financial performance. The Hospital utilizes square footage for their cost driver for calculating your bonus. Is this an appropriate cost driver for employee bonuses? Why or why not?

Students must post before seeing replies. Respond to 2 of your fellow classmates with meaningful responses prior to the due date for responses. You cannot move forward in the modules until this Discussion Post is complete.

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Suppose you are the Critical Care department head at Mercy Hospital.  Your bonus is dependent upon good financial performance. The Hospital utilizes square footage for their cost driver for calculating your bonus. Is this an appropriate cost driver for employee bonuses? Why or why not?

Students must post before seeing replies. Respond to 2 of your fellow classmates with meaningful responses prior to the due date for responses. You cannot move forward in the modules until this Discussion Post is complete.

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