partial list of Foothills Medical Center’s costs follows:a. Cost of laundry services for operating room personnelb. Salary of intensive care personnelc. Depreciation on patient roomsd. Cost of blood testse. Nurses’ salariesf. Cost of patient mealsg. Overtime incurred in the Patient Records Department due to a computerfailureh. Operating room supplies used on patients (catheters, sutures, etc.)i. Doctor’s feej. Cost of X-ray testk. Cost of maintaining the staff and visitors’ cafeterial. Cost of drugs used for patientsm. Cost of intravenous solutions used for patientsn. Cost of improvements on the employee parking loto. Salary of the nutritionistp. General maintenance of the hospitalq. Cost of advertising hospital services on televisionr. Cost of new heart wings. Training costs for nursest. Depreciation of X-ray equipmentu. Utility costs of the hospital Instructions1. What would be Foothills Medical Center’s most logical definition for the final cost object? Explain.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.
partial list of Foothills Medical Center’s costs follows:
a. Cost of laundry services for operating room personnel
b. Salary of intensive care personnel
c.
d. Cost of blood tests
e. Nurses’ salaries
f. Cost of patient meals
g. Overtime incurred in the Patient Records Department due to a computer
failure
h. Operating room supplies used on patients (catheters, sutures, etc.)
i. Doctor’s fee
j. Cost of X-ray test
k. Cost of maintaining the staff and visitors’ cafeteria
l. Cost of drugs used for patients
m. Cost of intravenous solutions used for patients
n. Cost of improvements on the employee parking lot
o. Salary of the nutritionist
p. General maintenance of the hospital
q. Cost of advertising hospital services on television
r. Cost of new heart wing
s. Training costs for nurses
t. Depreciation of X-ray equipment
u. Utility costs of the hospital
Instructions
1. What would be Foothills Medical Center’s most logical definition for the final cost object? Explain.
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.
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