Assignment Type: Individual Project Deliverable Length: Excel Spreadsheet and 4-

Question

Assignment Type: Individual Project Deliverable Length: Excel Spreadsheet and 4-5 body pages
Points Possible: 125 Due Date: 11/20/2011 11:59:59 PM CT

Consider the following scenario:
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



In an Excel spreadsheet:

•Provide a dollar range of costs to reduce budgets (worst and best case analysis).
•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.
For more information on creating Excel Spreadsheets, please visit the Excel Lab.

In addition to the Excel spreadsheet required to support your responses, you must prepare an APA formatted paper that will address the following:

•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.
Submitting your assignment in APA format means, at a minimum, you will need the following:

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. The deliverable length of the body of your paper for this assignment is 4-5 pages. 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.
This assignment will be assessed using additional criteria provided here.

Please submit your assignment.

For assistance with your assignment, please use your text, Web resources, and all course materials.

Explanation / Answer

heres a solution for same question with slightly different figures
i'm sure you'll be able to do your own after following this.

question

Dr. Stephanie White, the Chief Administrator of Uptown Clinic, who is concerned about the dilemma of coping with reduced budgets next year. 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
How to give a dollar range of costs to reduce budgets. I need to cut $94,000 in cost and prioritize the cuts without impacting the operation or quality care.

answer

The areas to cut expenses:

Assistant to the Administrator - $35,000
Cut One Secretary - 42,000
Reduce Supplies to a minimum - Cut $25,000
Eliminate Advertising and Promotion - $9,000
Reduce professional expenses to - cut $14,000
Eliminate Consulting - $10,000

Total cost savings: $135,000

Here are the reasons for the cuts proposed:

The administrator does not need an assistant and still has one secretary to do the typing and filing, answering phones, etc. The assistant administrator is and has been, a luxury and not a necessity. In private business, assistants are considered anunnecessary business expense and a waste of overhead dollars. Get rid of the fat.

There is too much spending on supplies. If you go around to everyone's desk and open up the drawers, they are full of unused pens and pads of paper. There is waste at the reproduction machine in terms of paper. Reduced staffing requires less paper, pens and reproduction. Require people to get along with LESS. Hand out one pen at a time, one pad of paper at a time. Supplies are always one of the first areas to cut unnecessary expenses.

Eliminate advertising and promotion. Advertising is EXPENSIVE and proving that you are getting a return on your dollar investment is very difficult to do, even in private business. WORD OF MOUTH will do and that is good enough. This is an unnecessary expense in an established business with no NEW products or services to promote.
Any returns on investment in this category are questionable
AT THE VERY BEST.

Get rid of the consultants. All you are doing is paying them to tell you how to run your own business. Consultants are not a cost effective way of running a business unless they are given very specific tasks and very specific deadlines. In a time of budget shortfall, such advise is a waste of money. You can run a business without consultants IF you know your own business well enough. They are an unnecessary overhead expense.

The rest of the people are needed to continue operation and services.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.