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Huron Hills Counseling Clinic is considering the possibility of dropping its drug abuse counseling services from its current service offerings. To better understand the financial
Huron Hills Counseling Clinic is considering the possibility of dropping its drug abuse counseling services from its current service offerings. To better understand the financial implications of this decision, the clinic manager has made the following four assumptions about how costs will change if drug abuse counseling services are indeed discontinued. Which of these assumptions is not reasonable? Select one: a. Discontinuing drug abuse counseling services will eliminate all variable direct costs of the mission center, such as medical and office supplies. b. Discontinuing drug abuse counseling services will not eliminate any of the fixed direct costs of the mission center, such as counselor salaries. c. Discontinuing drug abuse counseling services will eliminate the variable indirect costs of the mission center, such as supplies needed to clean the space occupied by the mission center. d. Discontinuing drug abuse counseling services will reduce, but not completely eliminate the fixed indirect costs of the mission center, such as billing support services
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