The chief nursing officer needed to make changes in the staffing budget because the hospital was opening an additional 10 beds to the emergency department. The nursing administrator had to look at what type of costs?
a. Variable costs
b. Sunk costs
c. Semivariable costs
d. Marginal costs
ANS: D
Marginal costs are the extra costs created by providing care to one more service unit. They are calculated as the difference between the total costs before and after adding one additional service unit.
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