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    Identify Cost Cuts to Reduce the Budgets of Dilemma within Uptown Clinic Agency

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    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. To plan for reduced 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

    Outpatient mental health treatment
    Salaries:
    Psychiatrist $86,000
    Two Social Workers $70,000

    1. Provide a dollar range of costs to reduce budgets (worst and best case analysis).
    2. She needs to cut $94,000 in cost. Prioritize those cuts that can be made without impacting the operation or quality care of the organization.
    Describe how managerial accounting is different from cost accounting.
    Describe the lean production philosophy.
    Compare and contrast accounting principles in lean production to those of typical production.
    Describe how you would advise Dr. White to prepare for reduced budgets.

    Instructions:

    1. TITLE PAGE. Remember the Running head: AND TITLE IN ALL CAPITALS
    2. ABSTRACT. A summary of your paper - not an introduction. Begin writing in third person voice.
    3. BODY. The body of your paper begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The type face should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics except as required for APA level headings and references. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
    4. REFERENCE PAGE. References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hang indention, italics, and upper and lower case usage as appropriate for the type of resource used. Remember, the Reference Page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.

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    Solution Preview

    See attached Excel spreadsheets.

    The 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. To plan for reduced budgets, she must first identify where costs can be cut or reduced and still keep the agency functioning.

    The Task:
    1. Provide a dollar range of costs to reduce budgets (worst and best case analysis).
    2. She needs to cut $94,000 in cost. Prioritize those cuts that can be made without impacting the operation or quality care of the organization.
    ? Describe how managerial accounting is different from cost accounting.
    ? Describe the lean production philosophy.
    ? Compare and contrast accounting principles in lean production to those of typical production.
    ? Describe how you would advise Dr. White to prepare for reduced budgets.

    Cost Accounting and Management Accounting:

    Cost accounting is the process of tracking, recording and analyzing costs associated with a company's product or project. Cost accounting information is primarily used for internal managers, rather than external auditors. Costs are measured in terms of Direct Costs, Indirect Costs and Overhead/Absorbed Costs. Managers use cost accounting to support decision making to reduce a company's costs and improve its profitability.

    Management accounting is concerned with the provisions and use of accounting and other information to managers ...

    Solution Summary

    The expert identifies the cost cuts to reduce the budgets of dilemmas.

    $2.19

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