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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 peer’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 (“save as”) 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 “Help Desk Forum”.


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