# Costing and Decision Making

Community Hospital is considering offering a new clinic for hospital employees and their dependents. The Accounting Manager would like you to assist with a review of cost assignments within the cost accounting system for a new service that is being considered. They review the following new service and cost with you.

There will be a manager hired to oversee the operations of the new service at a salary of \$6,000 per month. Technical staff will be scheduled on an as-needed basis, based on number of tests done, and will be paid \$25.00 per hour. In addition, there will be one new full-time unit secretary at \$15.00 per hour. A maintenance contract has been purchased to cover any needed repairs on the equipment at a cost of \$10,000 for 12 months. Office supplies generally run about the same each month, and are roughly \$100. Each test requires approximately the \$75 of testing supplies. The office rent is \$1,000 per month for the first year and then increases to \$1,200 for the second year. Electricity to run all of the office equipment is expected to be \$750 per month. Travel expenses for the manager will be \$150.

## Instructions

The Accounting Manager would like you to first create a Word document where you describe the characteristics of direct vs. indirect expenses and variable vs fixed expense. Following your discussion, you should create a table to classify each cost item (A–I) as:

1. Direct or indirect (D or I)
2. Variable or fixed (V or F)

She has asked you to prepare a table in Word with the following information:

You will have two answers (D or I; V or F) for each of the following items:

 Cost Item D or I V or F Department Manager Technical Staff Unit Secretary Maintenance Contract Office Supplies Testing Supplies Office Rent Electricity Travel Expenses

Finally, in your document, the Accounting Manager would like to know if there are any other assumptions that you have made in making your selections in the table.

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Lets Write For You
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend