The director of environmental services is comparing the entire hospital financials for the month to the laboratories? cost center activity. It is noted the laboratories? revenue is higher than environmental services
What might an explanation for this activity be? 1. The laboratory is charging more for their services.
2. Environmental services is a non-revenue producing cost center.
3. The laboratory is a non-revenue producing cost center.
4. The nursing units affect the laboratory charges.
2
Explanation: 1. The laboratory charges are not compared to environmental services costs. Environmental
services does not charge clients for their services, therefore they are a non-revenue producing
cost center. The laboratory does charge clients for there services, therefore they are a revenue
producing cost center. The nursing unit does affect laboratories revenue but this is not
applicable to the question.
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