The Empire Hotel is a four-star hotel located in downtown Seattle.
For each of the following costs incurred at the Empire Hotel, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object.
|Cost||Cost Object||Direct cost/indirect cost|
|Ex.||Room service beverages||A particular hotel guest||Direct cost|
|1.||The salary of the head chef||The hotel’s restaurant||Direct cost|
|2.||The salary of the head chef||A particular restaurant customer||Indirect cost|
|3.||Room cleaning supplies||A particular hotel guest||Indirect cost|
|4.||Flowers for the reception desk||A particular hotel guest||Indirect cost|
|5.||The wages of the doorman||A particular hotel guest||Indirect cost|
|6.||Room cleaning supplies||The housecleaning department||Direct cost|
|7.||Fire insurance on the hotel building||The hotel's gym||Indirect cost|
|8.||Towels used in the gym||The hotel's gym||Direct cost|
Note: The room cleaning supplies would most likely be considered an indirect cost of a particular hotel guest because it would not be practical to keep track of exactly how much of each cleaning supply was used in the guest’s room.