The costs of staffing and operating the accounting department at Columbia Hospital for Women would be considered by the Department of Surgery to be which of the following?
A)direct costs.
B)indirect costs.
C)incremental costs.
D)controllable costs.

Question

Quizplus · Accepted Answer

The staffing and operating costs of the accounting department at Columbia Hospital for Women are indirect costs because they are not directly attributable to the Department of Surgery's patient care activities. They are necessary for the hospital to function as a whole, but cannot be directly traced to specific procedures or services provided by the surgery department.

The Costs of Staffing and Operating the Accounting Department at Columbia