Which item would be correctly categorized as billable supplies?

• A. Bandages, as billable supplies
• B. Bandages, as overhead
• C. Bandages, as capital item
• D. Bandages, as personnel cost

Answer: (A)

Billable supplies are consumable items used directly to deliver a service and charged to the customer. Bandages are a consumable used during care, so their cost can be billed as part of the service provided. They’re not overhead, which covers indirect costs like utilities or facility upkeep; they’re not a capital item, which would be a long‑term asset that’s depreciated; and they’re not a personnel cost, which relates to labor. So bandages fit the bill as billable supplies.