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Types of Cost Classifications Assignment

Author:
February 18th, 2020

We can classify costs on the basis of the number of services provided. This is referred to as activity, utilization, or volume. As many of us have seen, in healthcare, there is a great deal of uncertainty with the volume. We have seen many hospitals lose their volume of inpatients to free-standing facilities. It is important for a manager to have some idea of the potential range of volume for the organization and department.

Identify the types of cost classifications. Be sure to discuss the characteristics of each one. Provide at least two examples of each one that you might find in a healthcare setting. Lastly, discuss how these classifications are related to cost behavior. In your opinion, which type is easier to manage? .

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