Question

Northwest Hospital is a full service hospital that provides everything from major surgery and emergency room care to outpatient clinics Required: For each of the following costs incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object Direct Cost Indirect Cost Direct Cost Cost Cost Object Ex Catered food served to patients A particular patient 1. The wages of pediatric nurses The pediatric department 2. Prescription drugs A particular patient 3. Heating the hospital The pediatric department The salary of the head of pediatrics The pediatric department 5. The salary of the head of pediatrics A particular pediatric patient 6. Hospital chaplain's salary A particular patient 7 Lab tests by outside contractor A particular patient 8 Lab tests by outside contractor A particular department

Answer 1

1.Wages of pediatric nurses =Direct cost

2.prescription drugs =Direct cost

3.Healing the hospital =Indirect cost

4.Salary of the head of the pediatrics =Direct cost

5.Salary of the head of the peditrics =Indirect cost

6.Hospital chairmans salary =Indirect cost

7.Lab test outside the contractor =Direct cost

8.Lab test outside the contractor =Direct cost

	Cost	Cost object
1	Wages of pediatric nurses	A pediatric department	Direct cost
2	prescription drugs	A particular patient	Direct cost
3	Healing the hospital	A pediatric department	Indirect cost
4	Salary of the head of the pediatrics	A pediatric department	Direct cost
5	Salary of the head of the pediatrics	A particular pediatric patient	Indirect cost
6	Hospital chairmans salary	A particular patient	Indirect cost
7	Lab test outside the contractor	A particular patient	Direct cost
8.	Lab test outside the contractor	A particular department	Direct cost