WGU C428 Review Latest Update Graded A
Direct Costs ✔✔Costs that can be specifically identified with a particular project or activity.
Direct Labor - Direct Materials - Manufacturing Supplies
Indirect Costs ✔✔Costs that are the result of general operations and are not directly tied to any specific project or activity
Rent - Utilities - General Office Expenses
Cost ✔✔Prior to delivery of service
Cash ✔✔Payment for operations, revenue, form of accounting
Capital ✔✔Investment, fixed assets, encompass money and assets
Control ✔✔Measuring cost, capital, cash 1 / 3
Cost of Debt ✔✔Interest rate required by lenders to furnish capital
Cost or Equity ✔✔Return required by owners to furnish equity capital
Cost of Capital ✔✔Weighted average of the costs of debt and equity financing used to generate capital for investments
Chief Financial Officer ✔✔Reports to CEO, Responsible for ALL finance activities
Controller ✔✔Responsible for ACCOUNTING and REPORTING activities.
Treasurer ✔✔Responsible ACQUISITION of capital
Healthcare manager ✔✔Must understand the implications of finance management
Organizational Structure ✔✔Key influencing factors include financial risk, liability, taxation, and organizational goals 2 / 3
Corporate loan interest ✔✔A combo of assessed risk and inflation determine the interest rate of a healthcare organization's loan
Debt financing and Equity ✔✔Determining debt versus equity financing involved weighing risk against return
Capital structure ✔✔Businesses should have optimal capital structure that balences the costs and benefit of debt financing to minimize corporate costs of capital
Break-Even Analysis ✔✔Determines the point when the investment in the project will generate a positive return
Discounted cash flow analysis ✔✔Estimates the value of an investments expected cash flows to help determine the attractiveness of the investment
Return on Investment ✔✔Used to measure the efficiency of the investment of the project
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