Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr.Ahmed, a 45 years old male, is a father of 3 kids (2 boys and 1 girl). Her wife is 42 years old and


Mr.Ahmed, a 45 years old male, is a father of 3 kids (2 boys and 1 girl). Her wife is 42 years old and teaches in a local school. Mr. Ahmed has been working as an accounts officer in a local firm. Recently their youngest son developed a rare respiratory disease which is to be treated in the hospital located in a nearby city, 100 km away from their home. On an estimate, Mr.Ahmed has to bring his son once a week to the hospital for his check up and treatment for which he has to take a day off from his office. His salary is not deducted but the company suffers a loss of 2 audits per day off by Mr.Ahmed (the cost of each audit is 75 riyal). His wife has to accompany her at least twice a month for which she has to suffer a half day salary deduction (for 2 days off=1 day salary deduction). The days when she accompanies her husband and son to the hospital they have to hire a part time maid to take care of their other kids for 8 hours. Still the other kids feel depressed and alone. Mr. Ahmed has to pay: 1. 500 riyal for fuel and his car for each visit to the hospital. 2. They spend 100 riyal for food for each visit to the hospital. 3. The daily salary of her wife is 350 riyal. 4. The salary of a maid is 50 riyal per hour. 5. The cost of his son's check-up is 250 riyal per visit. 6. The cost of drugs which he needs to purchase on each visit is 500 riyal. 7. The whole family suffers from anxiety, fatigue and depression. WHAT IS ? Cost type Total Direct medical cost per month Total Direct non-medical cost per month Total Indirect cost per month Total Intangible cost per month Total Direct cost (direct medical cost+direct non medical cost) Total Cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: kieso, weygandt and warfield.

14th Edition

9780470587232, 470587288, 470587237, 978-0470587287

More Books

Students also viewed these Accounting questions