When planning the budget for the unit, the nurse manager recognizes that equipment depreciation, utilities, fringe benefits, and salaries are considered:
a. fixed costs. c. direct expenses.
b. variable costs. d. indirect expenses.
A
Fixed costs are those expenses that are constant and not related to productivity or volume. Examples of
these costs are equipment depreciation, utilities, fringe benefits, and salaries. Variable costs fluctuate
depending on the volume, or census, and types of care required. Direct expenses are those expenses
that can be directly associated with patient care. Indirect expenses are expenses not directly related to
patient care.
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