Explain why cost management and cost allocation is important information for a healthcare manager?   What are indirect or overhead costs? Discuss one method in which overhead costs can be allocated?

1. Explain why cost management and cost allocation is important information for a healthcare manager?  
2. What are indirect or overhead costs? Discuss one method in which overhead costs can be allocated?
3. What is the degree of operating leverage? What does it mean if one firm has a measure of 40% and the other has a measure of 50%, which is better?
4. Define fixed cost and provide an example of a fixed cost in a healthcare setting.
5. Define variable cost and provide an example of a variable cost in a healthcare setting. 

Once you posted your initial discussion based on the above, respond to TWO of your fellow classmate’s responses in an area different from what you responded to initially.

Make sure you are properly citing your source(s) and providing your reference(s) for information you obtain from another source. Please review the Discussion Expectations and Grading posting if you have any questions regarding answering the discussion question and/or responding to your peers.