Butler Hospital wants to estimate the cost for each patient stay. It is a general health care facility offering only basic services and not specialized services such as organ transplants.
Required:
a. Classify each of the following costs as either direct or indirect with respect to each patient.
b. Classify each of the following costs as either fixed or variable with respect to hospital costs per day.
-Security
A) Direct
B) Indirect
C) Fixed
D) Variable

Question

Quizplus · Accepted Answer

Security costs are considered indirect because they cannot be directly traced to a single patient's care. Instead, security benefits the hospital as a whole. These costs are fixed because they do not vary with the number of patients or the amount of services provided in a day.

Butler Hospital Wants to Estimate the Cost for Each Patient