Purchased Maintenance Practice Exercise 5-1: Grouping Expenses by Cost Center Th

Question

Purchased Maintenance Practice Exercise 5-1: Grouping Expenses by Cost Center The Metropolis Health System groups expenses for the Intensive Care Unit intois nd Laundry expenses are likewise grouped into their cost center. Laboratory expenses a own cost centers. Required 1. Set up a worksheet with individual columns across the top for the three cost centers Intensive Care Unit, Laboratory, and Laundry. 2. Indicate the appropriate cost center for each of the following expenses: Drugs Requisitioned . Pathology Supplies e Detergents and Bleach . Nursing Salaries . Clerical Salaries . Uniforms (for Laundry Aides) . Repairs (parts for microscopes) (Hint: One of the expenses will apply to more than one cost center.) Headings for your worksheet: Intensive Care Unit Laboratory Laundry

Explanation / Answer

PRACTICE EXERCISE 5.1:Grouping expenses by cost centers.

The different cost centers which is applicable to different respective departments.Clerical salaries falls under all the department as clerk are essential functioning team.Uniforms are required as per policy and protocol of the hospital and hence falls in all special units.

PRACTICE EXERCISE 6-1:Identifying direct and indirect cost.

Direct ecpenses are mainly related to purchases and production of goods/services by the company while,indirect expenses are necessary to keep the business up and running, but they can’t be directly related to the cost of the core revenue generating goods or services.

Intensive Care Unit Laboratory Laundry Drug requisitioned Pathological supplies Detergents and bleach Nursing salaries Nursing salaries Clerical salaries Clerical salaries Clerical salaries Uniforms Uniforms Uniforms Detergents and bleach Repairs

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