Download WEEK 3 DQS DQ 1: Provide an example of a direct cost and indirect

WEEK 3 DQS
DQ 1:
Provide an example of a direct cost and indirect cost from your workplace or an
organization with which you are familiar. What is the difference? Explain your
answer. List references if you use a source other than the text.
If I know this rightly, direct expenses are a cost which can be traces straight to a
particular cost center, for example a division. Direct expenses are expenses of labor,
materials, and equipment to offer direct patient attention.
Indirect expenses are not easily determined having a particular project or company but
are incurred costs. Indirect expenses are also known as overhead expenditures such as
rent and amenities.
The organization I work for is a small organization, so direct cost from my workplace
incorporates things like wages and salaries, however excludes sick leave, vacation, and
holiday. For the organization I work for indirect pay incorporates FICA taxes, holiday,
vacation, and sick leave, amenities, accounting fees, indirect wage and materials, legal
fees, medical insurance, pension expense, and facility rental expense.
Week 3 DQ 2:
Understanding the difference between fixed and variable costs, what area of a
health care facility or physician practice do you think would have a greater
amount of variable costs than fixed? What would you suggest to lower the fixed
costs for the same area?
Fixed costs are expenses which remain the same monthly each month regardless of
whether the company is bombing or if it's in the toilet. Fixed expense is rent, loans, and
taxes.
Variable costs are expenses which differ every month. In case the company is bombing
you require more materials in case the company is in the toilet you require less.
Instance is Amenities, materials, and labor.
I believe the divisions with the greatest variable would be the ER, operation, and labor
and delivery. The ER gets many people every day for many reasons, the surgical
division carries out operation every day however some days they are overloaded and
other days they are slower. Labor and delivery is one division that's completely
unpredictable. The autumn months appear to be the busy for that division.
Are wages and salaries a fixed or a variable, I believe they are a variable however some
of the reading state they are a fixed.
"Fixed expenditures included capital expenses, worker wages and perks, building
maintenance, and amenities. Variable expenses incorporated medical care worker
materials, patient care materials, diagnostic and therapeutic materials, and medicines."
http://www.ncbi.nlm.nih.gov/pubmed/10029127