A PMHNP is planning to open an independent practice. As he prepares a budget, he examines the cost of doing business. During the pandemic, his former partners complained about the amount of postage they had to use to mail patients their updated COVID-19 clinic rules. Postage is an example of what type of cost?

Choice A reason: Fixed costs remain constant regardless of the volume of patients or services, such as rent or salaries, unlike postage. Choice B reason: Objective cost is not a standard accounting classification for business expenses. Choice C reason: Managerial cost refers to costs used for internal decision-making, not the nature of the cost itself. Choice D reason: Variable costs change in direct proportion to the volume of service, such as postage or supplies, which increase with patient communication needs.