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Different Types Of Fixed Costs For Healthcare Organizations

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Costs can be identified by different types of classification. Two types of expenditures that can be classified by behavior are variable and fixed costs. Variable costs are defined as expenses that vary directly and comparably to alterations in volume (Nowicki, 2015). An example of a variable cost within a healthcare organization would be the price of supplies to run the billing department or hourly staffing wages. Fixed costs will stay consistent no matter the volume (Nowicki, 2015). Examples of fixed costs for a healthcare organization are the rent or mortgage for the building or wages for salaried personnel. It is important that management understands both types of costs since both impact the costing structure of the organization and have

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