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?
   
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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.