Fixation of Salary, management homework help

One of the decisions that a healthcare finance manager has to make is whether to allow budgets to change over the course of a reporting period. A budget that never changes is called static, while a budget that changes based on actual activity is called flexible. Both approaches offer advantages and disadvantages for the healthcare organization.

Refer to the attached lecture titled “Static and Flexible Budgets, An Example”. In the example of the walk-in clinic, if you had the option of retaining the nurse practitioner on a salary, what salary would you offer? Why?

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