Butler Hospital Wants to Estimate the Cost for Each Patient

question 161

Essay

Butler Hospital wants to estimate the cost for each patient stay. It is a general health care facility offering only basic services and not specialized services such as organ transplants.
Required:
a.Classify each of the following costs as either direct or indirect with respect to each patient.
b.Classify each of the following costs as either fixed or variable with respect to hospital costs per day.

---

Definitions:

Derived Demand

Demand for a good or service that arises from the demand for another good or service.

Airline Pilots

Trained professionals who operate aircraft, navigating flights across various distances.

Air Travel

The act of transportation by aircraft, including commercial flights, private planes, and other forms of flying.

Variable Input

An input in the production process that can be adjusted in the short run to change the level of output.