The following costs should be considered direct costs of providing delivery room services to a particular mother and her baby: the costs of drugs administered in the operating room,the attending physician's fees,and a portion of the liability insurance carried by the hospital to cover the delivery room.

Question

Quizplus · Accepted Answer

Direct costs are those that can be directly traced to a specific service or product. While the costs of drugs and the attending physician's fees are direct costs, the liability insurance is an indirect cost as it is not directly attributable to a specific delivery.

The Following Costs Should Be Considered Direct Costs of Providing