Question: A partial list of Swain Hotel s costs is provided below

A partial list of Swain Hotel’s costs is provided below.
a. Pay-per-view movie rental costs (in rooms)
b. Training for hotel restaurant servers
c. Champagne for guests
d. Cost of laundering towels and bedding
e. Cost to replace lobby furniture
f. Cost of advertising in local newspaper
g. Cost to mail a customer survey
h. Cost of room mini-bar supplies
i. Depreciation of the hotel
j. Cost of valet parking
k. Guest room telephone costs for long-distance calls
l. Wages of bellhops
m. Salary of the hotel manager
n. Cost to paint lobby
o. Wages of kitchen employees
p. Wages of convention setup employees
q. Cost of food
r. Wages of maids
s. Cost of soaps and shampoos for rooms
t. Utility cost
u. Wages of desk clerks
v. Cost of new carpeting
w. General maintenance supplies

1. What would be Swain Hotel’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 hotel guest as the cost object.

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  • CreatedJune 27, 2014
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