Question

2. Please identify each of the following as either a Direct or Indirect cost in relationship to the Cost Object. (each worth 2 points)

			Direct	Indirect
	Cost	Cost Object	Cost	Cost
a.	The salary of the head chef	The hotel’s restaurant
b.	The salary of the head chef	A particular restaurant customer
c.	Room cleaning supplies	A particular hotel guest
d.	Flowers for the reception desk	A particular hotel guest
e.	The wages of the doorman	A particular hotel guest
f.	Room cleaning supplies	The housecleaning department
g.	Fire insurance on the hotel building	The hotel’s gym
h.	Towels used in the gym	The hotel’s gym

Answer 1

			Direct	Indirect
	Cost	Cost Object	Cost	Cost
a.	The salary of the head chef	The hotel’s restaurant		indirect
b.	The salary of the head chef	A particular restaurant customer		Indirect
c.	Room cleaning supplies	A particular hotel guest	Direct
d.	Flowers for the reception desk	A particular hotel guest	Direct
e.	The wages of the doorman	A particular hotel guest		Indirect
f.	Room cleaning supplies	The housecleaning department	Direct
g.	Fire insurance on the hotel building	The hotel’s gym		Indirect
h.	Towels used in the gym	The hotel’s gym		Indirect