1. Define direct costs.

2. Define Indirect costs

3. Why are direct and indirect costs important to management?

4. Would you describe your current job today as a direct cost or a indirect cost? Why?

Categorize the following as direct or indirect:

a. Managed care marketing expense

b. Real estate taxes

c. Liability insurance

d. Clinic telephone expense

e. Utilities (for the entire facility)

f. Emergency room medical supplies