Thursday, November 12, 2009

Among the indirect costs in dental clinic, which are fixed and which are variable?

Variable costs are costs that vary in total directly and proportionately with changes in the activity level. Fixed costs are costs that remain the same in total regardless of changes in activity level ( property taes, insurance, rent, depreciation etc).





As far as direct and indirect fixed costs- indirect fixed costs pertain to a company's overall operating activities and are incurred for the benefit of more than one profit center. Direct fixed costs are costs that relate specifically to one center and are incurred for the sole benefit of that center.





There doesn't that explain it just about as clear as mud!





This website can help explain it another way for you too...


http://www.accountingcoach.com/accountin...


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