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 a

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 a

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):

1. Explain why cost management and cost allocation is important information for a healthcare manager?  
2. What are indirect or overhead costs? Discuss one method in which overhead costs can be allocated?.
3. 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?
4. Define fixed cost and provide an example of a fixed cost in a healthcare setting.
5. Define variable cost and provide an example of a variable cost in a healthcare setting.

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