Question: 1. Define direct costs. 2. Define Indirect costs 3. Why are direct and indirect costs important to management? 4. Would you describe your current job

1. Define direct costs.

2. Define Indirect costs

3. Why are direct and indirect costs important to management?

4. Would you describe your current job today as a direct cost or a indirect cost? Why?

Categorize the following as direct or indirect:

a. Managed care marketing expense

b. Real estate taxes

c. Liability insurance

d. Clinic telephone expense

e. Utilities (for the entire facility)

f. Emergency room medical supplies

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