A case study analysis of a mental health organization faced with budgetary cuts.
Written in 2005; 675 words; 0 sources; $ 26.95
Paper Summary:
This paper looks at a mental health organization which is destined to face drastically reduced or eliminated discretionary costs.
From the Paper:
"Identify which costs you think are likely to be discretionary or committed costs. The list of discretionary costs includes supplies, advertising and promotion, professional meetings/dues, transportation, and consulting. Committed costs consist of all the salaries, accounting/billing, and other activities/costs requisite to engage in the primary business activity. One possibility is to eliminate all discretionary costs. The discretionary costs could easily be eliminated or at the least reduced. However, this option is rarely good for morale and often increases costs in other areas unforeseen in the planning process. Yet, when faced with a required reduction in budget, these are the areas that must go first. In the following budgetary periods, strategies to reduce the fixed/operating costs, such as property/facilities overhead should be examined. "
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