Sunday
November 23, 2014

Homework Help: accounting

Posted by Anonymous on Monday, March 31, 2008 at 6:43pm.

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. 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

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

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.

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

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