To get a better handle on cost behavior, what are some specific examples of variable, fixed, and mixed (semi-fixed) costs in our own personal lives.
Operating leverage can be risky. When does an organization benefit from having a high degree of operating leverage? When does it lose from having a high degree of operating leverage?
Read the article in the link below and review the “Leverage” example I posted under “Weekly Lesson”, “Week 5”, “Week Five Class Notes”. If you are a healthcare administrator, as the Affordable Healthcare Act is implemented, would you prefer a relatively high level of fixed costs or a relatively low level of fixed costs.
Watch the video in the link posted. The video discusses Fee-for-service, Capitation, and salary. The current trend is toward Capitation. Will this improve quality or profit more?