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Finance Assignment III Chapter 5 1. Explain the differences between fixed costs, semi fixed costs and variable costs The differences between fixed costs, semi-fixed costs and variable costs has to do with the amount of services provided. Variable costs

Finance Assignment III  Chapter 5

1.     Explain the differences between fixed costs, semi fixed costs and variable costs

 

The differences between fixed costs, semi-fixed costs and variable costs has to do with the amount of services provided. Variable costs are cost that are expected to increase and decreases with volume (patient’s days, number of visits, etc...). Fixed costs are costs expected to remain constant regardless of volume. Semi-fixed costs are those that are fixed with in ranges that are less than the relevant range.

 

2.     Total Costs are made up of what components?

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