Proposal on cutting costs recommendations constructed

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proposal on cutting costs recommendations constructed from a scenario of the worst and best examples. In the administration program area, one of the fixed and one of the constant cost is the Administrator’s salary, while on the other hand the assistant salary and the secretaries salaries are considered variable costs. Since the assistant and the secretaries salaries are variable costs, the two individuals that share the same work could possibly start a program called work share. Work share would mean that each involved individual would work thirty-two hours per week which will allow coverage of one on a schedule of Monday through Thursday and the other on a schedule of Tuesday through Friday. The work share program will allow for the clinic to keep operating five days a week while not immediately affecting the operations of the day to day business. On the other hand, the assistant may need to reduce their weekly hours to thirty-two hours per week, a twenty percent decrease, instead of working the forty hours per week. If this program was implemented and the assistant lost one full days worth of hours, job duties may need to be reassigned or may need to be covered by the administrator. The other option to reduce the variable costs, at this point, would be to lay off one of the secretaries. When approaching the cuts for the administration expenses would be between fifteen to thirty percent for dues and professional meetings, promotion and advertising, and supplies, and services that are purchased such as transportation, consulting, security, custodial, and billing and accounting. The cuts for
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COST ACCOUNTING 6 these expenses can be done by decreasing the required services amount by finding alternative services or by decreasing the hours that are needed. When analysing the Community Mental Health Services, cuts that would be needed could possibly consider cutting the work hours of both of the social workers by implementing the work share program, as mentioned above. This would mean that each social worker would be scheduled to work thirty-two hours per week, with one working a Monday through Thursday work week and the other working a Tuesday through Friday work week. Again, this would allow for coverage and the clinic to be able to stay open for the five days per week. The transporation expenses should be cut by twenty-five to thirty percent. When analyzing the Outpatient Mental Health Treatment services, there is one fixed and one variable cost. The salary of the Psychiatrists is the fixed cost and the social workers salaries are variable. The department cuts include the social workers salaries and done by either the work share program or by laying off one of the social workers.
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