Question

Comprehensive Care Nursing Home is required by statute and regulation to maintain a minimum 3 to 1 ratio of direct service staff to residents to maintain the licensure associated with the Nursing Home beds. The salary expense with direct service staff for Comprehensive Care Nursing Home would most likely be classified as:a. Variable costb. Fixed costc. Overhead costsd. Inventoriable costs

Answer 1

b. Fixed cost

Step-by-step explanation:

In the given instance it is provided that the Comprehensive Care Unit needs to maintain, at least a minimum of 3:1 ratio of direct service staff with that of residents.

Accordingly, as this is a requirement imposed for license associated to Nursing home. Accordingly this is a kind of legal requirement need to be fulfilled, thus, any payment to direct service staff in this regard will refer to as fixed cost.