What are the primary differences between direct and indirect costs? Please give an example of each. 

 

What is the differences between fixed costs and variable costs? Please give an example of each.

What is the goal of cost allocation?

Below is a table for three independent clinics. Fill in the missing data (a)- (f). You will have 6 answers to this question.

Financial Data on three Independent Clinics

ClinicRevenueTotal Variable CostFixed CostsTotal CostsProfit

Homeland Clinic$2,000$1,400(a)$2,000(b)

Washington Clinic(c)$1,000(d)$1,600$2,400

Townsend Clinic$4,000(e)$600(f)$400