Finance Assignment III Chapter 5

1. Explain the differences between fixed costs, semi fixed costs and variable costs

The differences between fixed costs, semi-fixed costs and variable costs has to do with the amount of services provided. Variable costs are cost that are expected to increase and decreases with volume (patients days, number of visits, etc...). Fixed costs are costs expected to remain constant regardless of volume. Semi-fixed costs are those that are fixed with in ranges that are less than the relevant range.

1. Total Costs are made up of what components?

Total costs are made up of two components fixed costs variable costs

1. What are the Critical Differences in profit analysis when conducted in a capitated environment versus a fee-for-service...