The researchers analyzed the cost of processing blood components in a hospital's blood transfusion services department using activity-based costing. They found that the manpower cost and the cost of blood bags were the main drivers of expenses. Component separation was the most expensive step, followed by cross-matching and specialized packed cells preparation. The ABC model showed higher costs compared to the Government of India's estimates. This study suggests that a standardized costing model can help hospitals identify ways to be more cost-efficient.