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.
-Electronic monitoring
A) Direct
B) Indirect
C) Fixed
D) Variable

Question

Quizplus · Accepted Answer

Electronic monitoring costs are direct because they can be directly traced to each patient. They are variable because the costs will vary with the number of patients or the extent of monitoring required per patient.

Butler Hospital Wants to Estimate the Cost for Each Patient