Direct Indirect Cost Cost Object Cost Cost Ex. Catered food served to patients 1. The wages of pediatric nurses 2. Prescription drugs 3. Heating the hospital 4. The salary of the head of pediatrics 5. The salary of the head of pediatrics 6. Hospital chaplain's salary 7. Lab tests by outside contractor A particular patient The pediatric department A particular patient The pediatric department The pediatric department A particular pediatric patient A particular patient A particular patient A particular department 8. Lab tests by outside contractor

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 4PA: Pareto chart and cost of quality report for a service company The administrator of Liberty Hospital...
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Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics.
Required:
For each cost incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object by placing an X in the appropriate column.

Direct
Indirect
Cost
Cost Object
Cost
Cost
Ex. Catered food served to patients
1. The wages of pediatric nurses
2. Prescription drugs
3. Heating the hospital
4. The salary of the head of pediatrics
5. The salary of the head of pediatrics
6. Hospital chaplain's salary
7. Lab tests by outside contractor
A particular patient
The pediatric department
A particular patient
The pediatric department
The pediatric department
A particular pediatric patient
A particular patient
A particular patient
A particular department
8. Lab tests by outside contractor
Transcribed Image Text:Direct Indirect Cost Cost Object Cost Cost Ex. Catered food served to patients 1. The wages of pediatric nurses 2. Prescription drugs 3. Heating the hospital 4. The salary of the head of pediatrics 5. The salary of the head of pediatrics 6. Hospital chaplain's salary 7. Lab tests by outside contractor A particular patient The pediatric department A particular patient The pediatric department The pediatric department A particular pediatric patient A particular patient A particular patient A particular department 8. Lab tests by outside contractor
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