19 Feb Cost classificationsservice companyA partial list
Cost classificationsservice companyA partial list of Frend Hotel’s costs is provided below.a. Champagne for guests.b. Cost to mail a customer survey.c. Training for hotel restaurant servers.d. Cost to replace lobby furniture.e. Cost of soaps and shampoos for rooms.f. Cost of food.g. Wages of desk clerks.h. Cost to paint lobby.i. Cost of advertising in local newspaper.j. Cost of laundering towels and bedding.k. Wages of kitchen employees.l. Guest room telephone costs for long-distance calls.m. Cost of room mini-bar supplies.n. Utility cost.o. Cost of valet service.p. General maintenance supplies.q. Wages of maids.r. Salary of the hotel president.s. Depreciation of the hotel.t. Cost of new carpeting.u. Wages of bellhops.v. Wages of convention setup employees.w. Pay-per-view movie rental costs (in rooms).Instructions1. What would be Frend’s most logical definition for the final cost object?2. Identify whether each of the costs is to be classified as direct or indirect. Define direct costs in terms of a hotel guest as the cost object.
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