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Discuss the decision theory

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1. Why is it important to keep track of both direct and indirect costs? How do these costs effect standard cost profiles?

2. Standard cost profiles have an important place in health care. What is the purpose of standard cost profiles in health care, and why are standard cost profiles important?

3. Define and discuss the decision theory. Please be sure to include why this theory is important to the healthcare budget.

4. Compare two of the budget ratios. What are the differences? What are the similarities? Give one example in each budget that would benefit a manager.

Reference no: EM132638644

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