A partial list of Foothills Medical Center's costs follows:

A. Cost of patient meals

Nurses' salaries

Depreciation of X-ray equipment

Utility costs of the hospital

Salary of intensive care personnel

Cost of X-ray test

Operating room supplies used on patients (catheters, sutures, etc.)

Salary of the nutritionist

General maintenance of the hospital

Cost of new heart wing

Cost of drugs used for patients

Cost of advertising hospital services on television

Cost of improvements on the employee parking lot

Cost of intravenous solutions used for patients

Training costs for nurses

Cost of laundry services for operating room personnel

Doctor's fee

Overtime incurred in the Patient Records Department due to a computer failure

Cost of blood tests

Cost of maintaining the staff and visitors' cafeteria

U. Depreciation on patient rooms

Instructions

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 direct or indirect. For purposes of classifying each cost as direct or indirect, use the patient as the cost object.