About This Chapter
Estimating Healthcare Costs - Chapter Summary
In this chapter, you'll find video lessons on estimating healthcare costs that make these topics easy to understand. Just a few of the subjects covered here include the formula for operating expenses, variable costing and examples of indirect costs. Our videos are easy to navigate and generally less than ten minutes in length. If you have questions as you watch the videos, take the short quiz included with each lesson or contact an expert through the Dashboard. After you complete this chapter, you should be able to:
- Define operating costs with examples
- Outline the formula associated with fixed costs
- Identify the method and advantages of variable costing
- Provide a definition and example of direct cost
- Give examples of indirect costs
- Explain the terms of cost allocation
- Understand how to calculate depreciation expense
1. Operating Expenses: Definition, Formula & Examples
This lesson introduces the concept of operating expenses. It explains what operating expenses are and how they are calculated. Examples of operating expenses are included.
2. Fixed Costs: Definition, Formula & Examples
Understanding an organization's cost structure is essential for management to make appropriate investments. In this lesson, you'll learn the definition of fixed costs and why understanding fixed costs is an important part of financial management.
3. Variable Costing: Method, Formula & Advantages
This lesson discusses variable costing. It explains how variable costs are determined, how they are calculated, and advantages of variable costing. Examples of variable costing are also provided.
4. Direct Cost: Definition, Formula & Examples
This lesson explains direct costs. Included in the lesson is how they are calculated. You'll also have the chance to examine examples of direct costs.
5. What Are Indirect Costs? - Definition & Examples
This lesson explains what indirect costs are and how they affect a business. Examples of indirect costs and how they can vary in different businesses are given.
6. Cost Allocation: Definition, Terms & Examples
Have you ever wondered how a business determines costs? In this lesson we will learn about cost allocation. We will define the term and apply it to some examples. The lesson will conclude with a summary of key concepts.
7. How to Calculate Depreciation Expense: Definition & Formula
As property wears out, it loses some of its value, which is called depreciation. In this lesson, we will learn three of the most common methods of calculating depreciation expense, including the straight-line method.
Earning College Credit
Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Transferring credit to the school of your choice
Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.
Other chapters within the Health 305: Healthcare Finance & Budgeting course
- Introduction to Healthcare Finance
- Organizational Structure in Healthcare
- Healthcare Organizations & Services
- Financial Reporting in Healthcare
- Health Insurance & Reimbursement
- Healthcare Financial Management
- Accounting & Income Statements in Healthcare
- Using Balance Sheets in Healthcare Finance
- Financial Assessment in Healthcare
- Healthcare Planning & Budgeting
- Project Costs & Evaluation in Healthcare
- Healthcare Staffing Needs & Forecasting
- Trends in Healthcare
- Required Assignment for Health 305