A partial list of Cottonwood Medical Center’s costs is provided below
a. Depreciation of X-ray equipment
b. Salary of the nutritionist
c. Cost of advertising hospital services on television
d. Cost of improvements on the employee parking lot
e. Cost of blood tests
f. Operating room supplies used on patients (catheters, sutures, etc.)
g. Cost of patient meals
h. Cost of X-ray test
i. Depreciation on patient rooms
j. Overtime incurred in the Patient Records Department due to a computer failure
k. Cost of maintaining the staff and visitors’ cafeteria
l. General maintenance of the hospital
m. Utility costs of the hospital
n. Cost of drugs used for patients
o. Training costs for nurses
p. Doctor’s fee
q. Cost of laundry services for operating room personnel
r. Nurses’ salaries
s. Salary of intensive care personnel
t. Cost of intravenous solutions used for patients
u. Cost of new heart wing

Instructions
1. What would be Cottonwood Medical Center’s most logical definition for the final cost object?
2. Identify whether each of the costs is to be classified as direct or indirect. For purposes of classifying each cost as direct or indirect, use the patient as the cost object.