University of Maryland Degree of Operating Leverage Discussion

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Choose ONE (1) question below to discuss and then respond to TWO (2) of your classmates answers (Try not to repeat others answers). Include the question with your response.

  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?
  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.

Make sure you are properly citing your source(s) and providing your reference(s) for information you obtain from another source. Please review the Discussion Expectations and Grading posting if you have any questions regarding answering the discussion question and/or responding to your peers.