EXERCISE $1-1$ Identifying Direct and Indirect Costs LO$1-1$

Northwest Hospital is a full$-$service hospital providing everything from major surgery and emergency room care to outpatient clinics.

Required:

For each cost incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object by placing an $x$ in the appropriate column.

$\backslash$table$[[$Cost$,$Cost Object,$\backslash$table$[[$Direct$],[$Cost$]],\backslash$table$[[$Indirect$],[$Cost$]]],[$Ex$.$ Catered food served to patients,A particular patient,$x,],[1.$ The wages of pediatric nurses,The pediatric department,,$],[2.$ Prescription drugs,A particular patient,,$],[3.$ Heating the hospital,The pediatric department,,$],[4.$ The salary of the head of pediatrics,The pediatric department,,$],[5.$ The salary of the head of pediatrics,A particular pediatric patient,,$],[6.$ Hospital chaplain's salary,A particular patient,,$],[7.$ Lab tests by outside contractor,A particular patient,,$],[8.$ Lab tests by outside contractor,A particular department,,$]]$