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2-17 Comprehensive Care Nursing Home is required by statute and regulation to maintain a minimum 3 to 1 ratio of direct servi
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Answer #1

Salary Expenses:

Salary expenses associated with direct service staff for the comprehensive care nursing home is fixed in nature because patient is came or not in nursing home but we have to pay the salary to these staff.

Variable Cost are those cost which are change with change in volume of revenue and production so this option is not correct.

Overhead cost are those cost which are indirectly related for providing of service. Direct service staff are not indirect cost so this option is also not correct.

Inventoriable cost are those cost which are provided related to production of inventory. In this case there is no inventory is producing so this option is also no correct.

Fixed cost are those cost which are not change due to change in volume of production of sales or services.

So the correct option for classification is Fixed Cost.

Answer = Option 2 = Fixed Cost

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