Cost Classifications for a 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 Service levelHospital levelPatient level 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 Classification a Cost of laundry services for operating room personnel DirectIndirect b Salary of intensive care personnel DirectIndirect c Depreciation on patient rooms DirectIndirect d Cost of blood tests DirectIndirect e Nurses salaries DirectIndirect f Cost of patient meals DirectIndirect g Overtime incurred in the Patient Records Department due to a computer failure DirectIndirect h Operating room supplies used on patients (catheters, sutures, etc ) DirectIndirect i Doctors fee DirectIndirect j Cost of X ray test DirectIndirect k Cost of maintaining the staff and visitors cafeteria DirectIndirect l Cost of drugs used for patients DirectIndirect m Cost of intravenous solutions used for patients DirectIndirect n Cost of improvements on the employee parking lot DirectIndirect o Salary of the nutritionist DirectIndirect p General maintenance of the hospital DirectIndirect q Cost of advertising hospital services on television DirectIndirect r Cost of new heart wing DirectIndirect s Training costs for nurses DirectIndirect t Depreciation of X ray equipment DirectIndirect u Utility costs of the hospital

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Cost Classifications for a Service Company A partial list of Foothills Medical Center's costs follows: 1. What would be Foothills Medical Center's most logical definition

Cost Classifications for a 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?

Service levelHospital levelPatient level

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	Classification
a. Cost of laundry services for operating room personnel	DirectIndirect
b. Salary of intensive care personnel	DirectIndirect
c. Depreciation on patient rooms	DirectIndirect
d. Cost of blood tests	DirectIndirect
e. Nurses salaries	DirectIndirect
f. Cost of patient meals	DirectIndirect
g. Overtime incurred in the Patient Records Department due to a computer failure	DirectIndirect
h. Operating room supplies used on patients (catheters, sutures, etc.)	DirectIndirect
i. Doctors fee	DirectIndirect
j. Cost of X-ray test	DirectIndirect
k. Cost of maintaining the staff and visitors cafeteria	DirectIndirect
l. Cost of drugs used for patients	DirectIndirect
m. Cost of intravenous solutions used for patients	DirectIndirect
n. Cost of improvements on the employee parking lot	DirectIndirect
o. Salary of the nutritionist	DirectIndirect
p. General maintenance of the hospital	DirectIndirect
q. Cost of advertising hospital services on television	DirectIndirect
r. Cost of new heart wing	DirectIndirect
s. Training costs for nurses	DirectIndirect
t. Depreciation of X-ray equipment	DirectIndirect
u. Utility costs of the hospital