Variable and Fixed Costs in Healthcare Management

The professor Huang will explore the nuances of variable and fixed costs in financial management, particularly within healthcare administration.

While economists simplify fixed costs as static and variable costs as changing, accounting requires a more nuanced understanding. Variable costs fluctuate in direct proportion to output, like tires in car production, while fixed costs, such as facility rent, remain constant regardless of output. Managing these costs effectively is crucial for financial sustainability in healthcare operations.