It is budget time and the CEO has asked you to develop a presentation on cost concepts and how it is used in decision making. As the Director of Budgeting and Finance, you have been tasked to present the presentation to all directors, supervisors and physicians. The CFO has ask you to address the following:

How and why do we classify cost?

Discuss the four major categories of direct and indirect cost and explain each. Give examples of each.

What is the difference between controllable and uncontrollable cost, give an example of each.

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