Opening an Outpatient Wound Clinic

Categories in Budget (Fixed and Variable Expenses)

Budgeting for the outpatient wound clinic includes both fixed and variable expenses. Fixed costs are reported in the work of Swansburg (1997) to be unrelated to volume and to remain constant, as there are increases and decreases in volume over a time-period. Fixed costs are reported to include such as:

(1) Depreciation of equipment and buildings;

(2) Salaries;

(3) Fringe benefits;

(4) Utilities;

Interest on loans or bonds; and (6) Taxes. (Swansburg, 1997)

Variable costs do however "relate to volume and census. They include such items as meals and linen." (Swansburg, 1997) it is reported that supplies are usually volume responsive, meaning that total costs increase or decrease according to use." (Swansburg, 1997)

Direct and Indirect Costs

Direct and indirect costs of making the provision of service of product and are costs that are not "directly related to...
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