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Essay / Cost Management - 1243
Dr. Stephanie White, chief administrator of Uptown Clinic, a community mental health agency, worries about the dilemma of facing reduced budgets next year and the near future, but growing demand for services. In order to plan for reduced budgets, she must first identify areas where costs can be reduced while still maintaining the operation of the agency. Below is some data from last year. You need to reduce costs by $94,000. Prioritize cuts that can be made without affecting the operation or quality of care of the organization.Program area Current costs Proposed reductions New budgetAdministrationSalaries:Administrator $60,000.00 (20,000.00) $40,000.00 $Assistant $35,000.00 ($35,000.00) -Two secretaries $42,000.00 $ - $42,000.00 Supplies $35,000.00 ($12,000.00) $23,000.00 Advertising and promotion $9,000.00 - $9,000.00 Professional meetings/dues $14,000.00 (14,000.00) $ -Services purchased: $ -Accounting and invoicing $15,000.00 - $15,000.00 Custody $ 13,000.