appropriate derivation of a cost
Not what you're looking for?
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 reduced budgets, she must first identify where costs can be cut or reduced and still keep the agency functioning. Please see attached file for some data from the past year.
1. Give a dollar range of costs to reduce budgets (worst and best case analysis).
Steps:
(1) First determine whether the following costs are:
All committed cost and how much
Discretionary cost and how much
Part committed cost (how much) and the other part is discretionary cost (how much)
(2) Then determine total amounts of committed and discretionary costs
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.
Explain the impact of eliminating or cutting down the following costs:
Transportation for social workers
Professional Development opportunities of the staff
Advertising and promotion
Consulting
Maintenance and custodial care
Administrative assistant and one secretary
3. How would you advise Dr. White to prepare for reduced budgets?
Explain how Dr. White should build her case for even higher resources instead of cuts.
*Some helpful instructions are listed underneath each of the 3 questions.
Purchase this Solution
Solution Summary
The appropriate derivation of a cost is shown.
Solution Preview
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 reduced budgets, she must first identify where costs can be cut or reduced and still keep the agency functioning. Please see attached file for some data from the past year.
1. Give a dollar range of costs to reduce budgets (worst and best case analysis).
Steps:
(1) First determine whether the following costs are:
All committed cost and how much
Administrator's salaries $60,000
Assistant's salaries $35,000
Psychiatrist's salaries $86,000
Total Committed costs are: $181,000.
Discretionary cost and how much
Custodial Services: $13,000
Security Services $12,000
Accounting and Billing Services $15,000
Consulting Services $10,000
Transportation related to community mental health services $10,000.
Total Discretionary costs are: $60,000.
Part committed cost (how much) and the other part is ...
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce