Give a dollar range of costs to reduce budgets


Problem:

Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduce budgets, she must first identify where costs can be cut or reduced and still keep the agency functioning. Below are some data from the past year.

Program Area Costs

Administration
Salaries:

* Administrator $60,000
* Assistant $35,000
* Two Secretaries $42,000

Supplies $35,000
Advertising and promotion $9,000
Professional meetings/dues $14,000

Purchased Services:

* Accounting and billing $15,000
* Custodial $13,000
* Security $12,000
* Consulting $10,000

Community Mental Health Services

Salaries ( two social workers) $46,000
Transportation $10,000

Outpatients mental health treatment Salaries:

*Psychiatrist $86,000
*Two Social Workers $70,000

Questions:

1. Give a dollar range of costs to reduce budgets ( worst and best case analysis).

2. You need to cut $94,000 in cost. Prioritize those cuts that can be made without impacting the operation or quality care of the organization.

3. How would you advise Dr. White to prepare for reduced budgets?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Give a dollar range of costs to reduce budgets
Reference No:- TGS01935415

Now Priced at $25 (50% Discount)

Recommended (93%)

Rated (4.5/5)