Author Question: You are a new manager for an ambulatory surgical facility. Part of your job is to develop and ... (Read 73 times)

serike · **on:** Jul 8, 2018

You are a new manager for an ambulatory surgical facility. Part of your job is to develop and maintain budgets for expenses. Medical and surgical supplies, drugs, laundry, and food are considered what type of expense?

a. fixed costs c. direct expenses
b. variable costs d. indirect expenses

Question 2

Equipment depreciation, fringe benefits, and salaries are considered:

a. fixed costs c. direct expenses
b. variable costs d. indirect expenses

meganmoser117 · **Reply #1 on:** Jul 8, 2018

Answer to Question 1

B
Variable costs tend to fluctuate depending on the volume, census, or types of care required. Medical and surgical supplies, laundry, and food costs often increase with volume. Direct expenses are those expenses that can be directly associated with patient care. Indirect expenses are expenses not directly associated with patient care.

Answer to Question 2

A
Fixed costs are those expenses that are constant and are not related to productivity or volume. Examples of fixed costs include equipment depreciation, fringe benefits, and salaries. Variable costs can fluctuate depending on the volume or census and types of care required. Direct expenses are those expenses that can be directly associated with patient care. Indirect expenses are expenses that are not directly related to patient care.