Your organization has opened a walk-in clinic. A list of expenses has been given to the new staff accountant, Marvin, from the walk-in clinic manager and Marvin needs your help. Marvin wants you to...


Your organization has opened a walk-in clinic.  A list of expenses has been given to the new staff accountant, Marvin, from the walk-in clinic manager and Marvin needs your help.  Marvin wants you to help him identify whether costs shown in the table below are direct or indirect.  Additionally, Marvin would like you to describe:


1.  The difference between direct and indirect costs.


2.  The "rule of thumb" for recognizing direct costs.


3.  Update the direct and indirect columns by placing an X in the appropriate column.


4.  The monetary total of direct and indirect costs.
























































































































Item

Cost

Direct

Indirect
IT Salaries and Benefits$1,500
RN Salaries and Benefits$9,600
Utilities and Telephone$3,000
Carpets$1,000
Magazine Subscriptions$     50
Vehicle Expense$1,775
Exam Table$5,500
End Tables$   500
Coffee Tables$1,400
Facility Insurance$   650
Staff Uniforms$1,200
Cleaning Supplies$   200
Desk Lamps$   150
Front Desk Flowers$   300
Bottled Water$   250
Facility Maintenance$   700
Landscaping Expense$1,800
Facility Cleaning$1,500




Jun 07, 2022
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