Doctors Without Borders (DWB) operates health programs around the world. It has a central staff of 100 people who administer its worldwide programs. DWB’s central operation buys and distributes all the supplies used in its various country operations. DWB’s country director for Afghanistan and her staff run 20 clinics around the country. At the clinic level, doctors and nurses hired under 2-year fixed contracts administer medical treatment free of charge to the local population using supplies shipped to them by DWB’s central staff.
1. From the perspective of the program director for Afghanistan, which of the program’s expenses are
a. Direct,
b. Indirect,
c. Fixed, and
d. Variable?
2. Which of the direct expenses for Afghanistan would be classified as indirect from the perspective of a clinic director?