Cost Accounting Budget
Details: 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
Administratio
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:
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.
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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