Cost Management

I added all of the amounts for a total of $457,000
Costs
Maximum $60,000 $12,000 Divide by 5
Maximum $35,000 $7,000 5
Maximum $42,000 $8,400 5
Maximum $35,000 $7,000 5
Minimal $9,000 $1,180 5
Minimal $14,000 $2,800 5
Minimal $15,000 $3,000 5
Minimal $13,000 $2,600 5
Minimal $12,000 $2,400 5
Minimal $10,000 $5,000 2
Maximum $46,000 $9,200 5
Minimal $10,000 $4.600 2.17
Maximum $86,000 $17,200 5
Maximum $70,000 $14,000 5
Total $457,000.00 $94,000.00

Range of costs $363,000.00 that would need to be depleted or cut.
I took 60,000 and divided it by 5 for a total of 12,000, Maximal Cut. 35,000/5 for a total of 7,000, Maximal cut. 42,000/5 for a total of 8,400, Maximal cut. 35,000/5 for a total of 7,000, Maximal cut. 9,000/5 for a total of 1,180, Minimal Cut. 14,000/5 for a total of 2,800, Minimal Cut. 15,000/5 for a total of 3,000, Minimal Cut. 13,000/5 for a total of 2,600, Minimal Cut. 12,000/5 for a total of 2,400, Minimal Cut. 10,000/2 for a total of 5,000, Minimal Cut.. 46,000/5 for a total of 9,200, Maximal Cut. 10,000/2.17391304347 for a total of 4,600, Minimal Cut. 86,000/5 for a total of 17,200, Maximal Cut.   and 70,000/5 for a total of 14,000, Maximal Cut. With this budget it will save a few extra dollars
Cuts: Maximal Cuts
Cut one Secretary, Cut one Social worker, and Limited Professional meetings.
Minimal Cuts:
Lower salaries, Transportation can be lowered, Administration will either be lowered or cut, Assistant, Advertising and promotions, accounting and billings, Custodial, Security, Consulting, Psychiatrist and social worker

Committed fixed costs: Those costs of facilities and services that are shared by users.
(Introduction to Management Accounting, Page 92)

Discretionary fixed costs: Costs determined by management part of the periodic planning process in order to meet the organizations goals. They have no obvious relationship with level of capacity or output activity.
(Introduction to Management... [continues]

Read full essay