A partial list of The Grand Hotel’s costs follows:a. Cost to mail a customer surveyb. Wages of convention setup employeesc. Pay-per-view movie rental costs (in rooms)d. Cost of foode. Cost of room mini-bar suppliesf. Training for hotel restaurant serversg. Cost to paint lobbyh. Cost of laundering towels and beddingi. Champagne for guestsj. Salary of the hotel managerk. Depreciation of the hotell. Cost of valet parkingm. Wages of bellhopsn. Cost to replace lobby furnitureo. Cost of advertising in local newspaperp. Wages of desk clerksq. Wages of maidsr. Cost of new carpetings. Guest room telephone costs for longdistance callst. Cost of soaps and shampoos for roomsu. Utility costv. Wages of kitchen employeesw. General maintenance suppliesInstructions1. What would be The Grand Hotel’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 hotel guest as the cost object.
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.
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 longdistance 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?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 hotel guest as the cost object.
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