Sunshine daycare center case study

The Daycare Center has been in business for a number of years and

Fixed costs do not vary with the cost driver—the children. In the first column, list the expense name. If you divide the incremental variable cost by the difference in units FTEs in this caseyou get the variable cost per unit. The budget is being used for this analysis since we do not have a full year of actual expenses and there could be seasonable variability that would affect the quarterly amounts.

Restate the cost function to an annual cost function multiply everything by 4 so that it may be compared to the account analysis method. Growing a business to profitability. For example, the weather may affect the cost of utilities, but the number of children is unlikely to affect the utilities.

To do that, you will need to understand how the business is operating now and decide what areas need improvement. Issues in Accounting Education, 28 2 If they are fixed expenses, they cannot be cut.

What expenses are the ones causing the large losses? We need to go one step further to break total variable costs into variable cost per unit. In the third column, put a V in the column next to the identified variable expenses. This will give you the variable total cost by quarter.

Quarterly Budget Cost Data. It is best when the activities of each period are very similar, such as electricity rates. The cost function is a time-saving tool to estimate the costs at any level of capacity, in this case at any number of children in the daycare center.

Infants ages 0—18 monthsToddlers ages 18—36 monthsPreschool ages 3—5 yearsKindergarten ages 6—7 yearsand School-Age Children ages 8—11 years. What is the yearly cost function for the Daycare Center for the current year using the account analysis method?

The following analyses should be prepared: If this were a business with hundreds of expenses, this would be very laborious. Note that two half-day students equal one full-time-equivalent student FTE for headcount purposes.

If you would like further description of the account analysis method there is a video you may watch at http: The Daycare Center has been in business for a number of years and Question Description: Your ultimate goal will be a report to the director outlining a strategy for improved profitability for the Daycare Center.

We prefer that the time periods would not be sequential. One way of starting to understand what the financial condition of the Daycare Center is, is to compare what is happening to what was planned in the budget.Related Documents: Sunshine Center: an Instructional Case Essay Sunshine Daycare Essay Mackenzie Price Comp 1 28 September “Sunshine Daycare” Mrs.

Melissa Morris Parent o Suzy N Hwy 61 Blytheville, AR Dear Mrs. Morris, Sunshine daycare has a great team that works well with children and the parents. At Sunshine Day Care Center, we integrate knowledge and skill building into purposeful play for our students.

Our low student-to-teacher ratios, experienced staff, and supportive learning environments prove to be an effective program for all students. Trident University Module 4 Case Assignment Principles of Management Dr. Rhonda Hatfield 26 February Module 4 Case: The Management Function of Directing Case Study Assignment Expectations: After reading the article, please respond to the following questions.

1). Sunshine Day Care Center is the ideal place to keep your child in a safe environment while you are at work. Contact () today for more information about our services or to sign up your child.

Sunshine's open door policy supports open communication between parents and faculty. We believe that constant collaboration and communication between the staff and parents is an integral part of a student's academic and emotional growth.

Sunshine Daycare Center began operations in October under the visionary leadership of Mr.

502 Bad Gateway

and Mrs. Davis.

Ina group of investors acquired a controlling interest in the company. Ina group of investors acquired a controlling interest in the company.

Sunshine daycare center case study
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