Question

Cost based fee schedules are developed by accounting for all the costs involved with providing a procedure or service. What does this include?

Answer 1

Cost based fee schedules take into account all the costs involved in providing a service or procedure, including fixed and variable costs.

Step-by-step explanation:

Cost based fee schedules are developed by accounting for all the costs involved with providing a procedure or service. This includes both fixed costs and variable costs. Fixed costs refer to costs that do not change regardless of the level of production, such as rent for the office space and equipment. Variable costs, on the other hand, are costs that change based on the level of production, such as hiring barbers for a barber shop.