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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.

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