HCMG 750 WEEK 2 DISCUSSION DQ1 W2 Due Day 3 1. Define direct costs. 2. Define Indirect costs 3. Why are direct and indirect costs important to management? 4. Would you describe your current job today as a direct cost or a indirect cost? Why? 5. Categorize the following as direct or indirect: a. Managed care marketing expense b. Real estate taxes c. Liability insurance d. Clinic telephone expense e. Utilities (for the entire facility) f. Emergency room medical supplies DQ2 W2 Due Day 5 What is break-even analysis and why is it an important element in the discussion of operating leverage? In your response include a discussion on the break-even point. Compare fixed and variable costs and explain the significance of the difference in making financial decisions. What does contribution margin (CM) mean? Peer response W2 Due Day 6 Every week I expect you to post a response to one of your peerâ€™s posts. The post should be written in APA format, include three well-constructed paragraphs, and include at least 1 reference either peer-reviewed or our text. Assignments: Your paper must be submitted as a Microsoft Word .doc document. If you are using Microsoft 2007 software you must save (â€œsave asâ€) your work in an earlier version of Word to ensure you turn in the .doc format. Try this early to make sure you are able to save your work as a .doc file. Any Questions? Use the â€œHelp Desk Forumâ€.
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