Topic > The Operating Budget: A Case Study: Denison Hospital

Average cost maintains the total target cost divided by the number of units of service provided while marginal cost refers to the additional cost incurred as a result of providing one plus service unit (Finkler et al., 2013). Fixed cost refrains from changing based on changes in the volume of service units while variable cost, at the opposite end, varies based on changes in the volume of service units (Finkler et al..,