Based on this week’s readings, discuss ONE of the following questions for your initial response to this week’s discussion (try not to replicate other’s responses):
- Explain why cost management and cost allocation is important information for a healthcare manager?
- What are indirect or overhead costs? Discuss one method in which overhead costs can be allocated?.
- What is the degree of operating leverage? What does it mean if one firm has a measure of 40% and the other has a measure of 50%, which is better?
- Define fixed cost and provide an example of a fixed cost in a healthcare setting.
- Define variable cost and provide an example of a variable cost in a healthcare setting.
