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Distinguish between fixed and variable costs

2. What is meant by the “relevant range?”
3. Does the volume of patients have an impact on the cost per patient?
4. Do health care organizations prefer higher patient volume? Why or why not?
5. Should decisions to add more patients to an existing service be based on the average cost per patient?
6. What is the goal of cost estimation?
7. What is the difference between direct and indirect costs?