The costs of the Accounting Department at Central Hospital would be considered by the Surgery Department to be:

a. direct costs.

b. indirect costs.

c. incremental costs.

d. opportunity costs.

Question

Business

Rolex

29 April, 04:42

The costs of the Accounting Department at Central Hospital would be considered by the Surgery Department to be:

a. direct costs.

b. indirect costs.

c. incremental costs.

d. opportunity costs.

+3

Answers (1)

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Lucille Brooks · Answer 1

b) Indirect cost

Explanation:

Accounting department is a service department, providing services to all business departments of the organisation, thus cost of accounting department cannot be attributed directly to any specific activity. Thus cost of accounting department to all business centers will be an indirect cost.

The costs of the Accounting Department at Central Hospital would be considered by the Surgery Department to be:a. direct costs.b. indirect costs.c. incremental costs.d. opportunity costs.

The costs of the Accounting Department at Central Hospital would be considered by the Surgery Department to be:

a. direct costs.

b. indirect costs.

c. incremental costs.

d. opportunity costs.