The nursing station on the fourth floor of Columbia Hospital for Women is responsible for the care of patients who have just given birth.The costs of drugs administered by the nurses to patients would be classified as

Question

Quizplus · Accepted Answer

The costs of drugs administered by the nurses to patients are directly related to the care of the patients and are easily traceable to the specific patient receiving the medication. Therefore, they can be classified as direct costs. Indirect costs are those costs that cannot be directly traced to a specific patient or product. Overhead costs are indirect costs that are necessary to run the facility or department, such as rent, utilities, and salaries of administrative staff. Period costs are costs that are not related to the production or delivery of goods or services, such as marketing or research and development expenses.

The Nursing Station on the Fourth Floor of Columbia Hospital