Cost Management
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
Maximum
$42,000
$8,400
Maximum
$35,000
$7,000
Minimal
$9,000
$1,180
Minimal
$14,000
$2,800
Minimal
$15,000
$3,000
Minimal
$13,000
$2,600
Minimal
$12,000
$2,400
Minimal
$10,000
$5,000
Maximum
$46,000
$9,200
Minimal
$10,000
$4.600
Maximum
$86,000
$17,200
Maximum
$70,000
$14,000
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