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