CMA Intermediate · Cost Accounting · Operating Costing - Transport, Hotel and Healthcare
Which of the following costs in a hospital is best classified as a fixed cost of the in-patient ward service?
The permanent matron's salary is a fixed cost because it stays the same regardless of the number of patients within the normal range. Food, medicines and laundry charged per patient-day change with patient activity, so they are variable costs.
- ASalary of the permanent matronCorrect
- BCost of food served to patients
- CCost of medicines consumed per patient
- DLaundry charges billed per patient-day
Explanation
A permanent matron's salary does not change with the number of patients treated within the relevant range, so it is fixed. Food, medicines and per-day laundry vary with patient volume or days, so they are variable.
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