The nursing station on the fourth floor of Central Hospital is responsible for the care of orthopedic surgery patients. The costs of prescription drugs administered by the nursing station to patients should be classified as:
A)direct patient costs.
B)indirect patient costs.
C)overhead costs of the nursing station.
D)period costs of the hospital.

Question

Quizplus · Accepted Answer

The costs of prescription drugs administered by the nursing station are directly related to the care of orthopedic surgery patients and are incurred specifically for the purpose of providing medical treatment to these patients. Therefore, they should be classified as direct patient costs. Indirect patient costs, on the other hand, are costs that are not directly related to the provision of medical treatment, such as administrative or housekeeping costs. Overhead costs of the nursing station and period costs of the hospital are broader categories that may include direct patient costs but also encompass other types of expenses as well.

The Nursing Station on the Fourth Floor of Central Hospital