CHAPTER 18 Cost Classifications-Service Company A partial list of Foothills Medi
ID: 2572379 • Letter: C
Question
CHAPTER 18
Cost Classifications-Service Company A partial list of Foothills Medical Center's costs follows 1. What would be Foothills Medical Center's most logical definition for the final cost object? 2. Identify whether each of the costs is to be classified as a direct cost or an indirect cost. For purposes of classifying each cost as direct or indirect, use the patient as the cost object. Costs a. Cost of patient meals b. Nurses' salaries c. Depreciation of X-ray equipment d. Utility costs of the hospital e. Salary of intensive care personnel f. Cost of X-ray test 9. Operating room supplies used on patients (catheters, sutures, etc) h. Salary of the nutritionist i. General maintenance of the hospital Classification Cost of new heart wing k. Cost of drugs used for patients . Cost of advertising hospital services on television m. Cost of improvements on the employee parking lotExplanation / Answer
1. Answer:- The most logical defination of the final cost object of Foothills Medical Center's would be the Patient. The major reason is that cost can be accumulated at the Patient level for billing and insurance reimbursement purposes.
2 Answer:- The cost of the following is classified as direct cost or indirect cost, they are :-
a. Indirect Cost
b. Direct Cost
c. Indirect Cost
d. Indirect Cost
e. Indirect Cost
f. Direct Cost
g. Indirect Cost
h. Indirect Cost
I. Indirect Cost
j. Indirect Cost
k. Direct Cost
l. Indirect Cost
m. Direct Cost
n. Direct Cost
o. Indirect Cost
p. Indirect Cost
q. Indirect Cost
r. Indirect Cost
s. Direct Cost
t. Indirect Cosy
u. Direct cost