Question

You are the administrator of a community clinic in a rural county with limited access to preventive services. The county public health department has received a grant to purchase a mobile digital mammography screening van. The regional healthcare system has agreed to provide as community benefit the cost of the radiologist time to interpret the digital mammograms, with the digital images being sent nightly to their facility to be read. The county has asked that your clinic be responsible for the daily operations and expenses of providing the digital mammography screening services. They have asked you to put together a document that shows the daily work flow and tasks for the screening service, a staffing plan, and a budget showing assumptions of projected revenues and expenses. The clinic is responsible for paying for the van insurance and the service maintenance contract for the digital mammography equipment. These costs do not fluctuate based on the number of digital mammograms performed. What type of costs are these? Fixed costs No answer text provided. Variable costs No answer text provided.

Answer 1

I think this is a fixed cost.because it does not vary according to the number of mammogram performed.clinic should pay for staff ,van insurance and service maintainane according tothe order of the goverment.if number of mammography increases,the cost not going to get increased.it will be same as ordered.the clinic can get profited through this.while,if numbers get decreased,there will not be any productivity for the clinic.they should pay same amount in both situation.it is hardly get changed.thus,it is a variable cost.