Cost classifications for a service company OBJ. 2 A partial list of The Grand Hotel’s costs follows:

a. Cost to mail a customer survey

b. Wages of convention setup employees

c. Pay-per-view movie rental costs (in rooms)

d. Cost of food

e. Cost of room mini-bar supplies

f. Training for hotel restaurant servers g. Cost to paint lobby h. Cost of laundering towels and bedding i. Champagne for guests j. Salary of the hotel manager k. Depreciation of the hotel l. Cost of valet parking m. Wages of bellhops n. Cost to replace lobby furniture o. Cost of advertising in local newspaper p. Wages of desk clerks q. Wages of maids r. Cost of new carpeting s. Guest room telephone costs for long-distance calls t. Cost of soaps and shampoos for rooms u. Utility cost v. Wages of kitchen employees w. General maintenance supplies Instructions 1. What would be The Grand Hotel’s most logical definition for the final cost object?
2. Identify whether each of the costs is to be classified as direct or indirect. For purposes of classifying each cost as direct or indirect, use the hotel guest as the cost object.