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Answer the following question in your own words. Your answer must have a 150 minimum word...

Answer the following question in your own words. Your answer must have a 150 minimum word count:

  • Describe the difference between direct and indirect costs and provide examples of each for an outpatient clinic.
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Ans) The difference between direct costs and indirect costs.

- Direct cost are those expenses that are paid only for the business part of your home.

Examples of direct costs are direct labor, direct materials, commissions, piece rate wages, and manufacturing supplies.

- Indirect cost: Indirect Expenses are those expenses that are paid for keeping up and running your entire home.

Examples of indirect costs are production supervision salaries, quality control costs, insurance, and depreciation.

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