You are the practice manager for a five-physician cardiology practice.

Explain your responsibilities as a practice manager as they pertain to future demand and managerial accounting. As with most things in life, there are pros and cons in this too. When working as a practice manager, you have several methods for determining the cost.

Discuss fixed versus variable and direct versus indirect cost classifications. When would you elect to use these? What are the pros and cons of each type of cost classification? When does a manager use relevant range in cost determination?