Answer the four questions and organize each of your initial question responses in the following manner:
Identify the question you are responding to.
Your response should be in a paragraph style and contain at least 50 words per question.
All postings should meet acceptable standards of grammar and structure. References with proper citations are welcomed as appropriate.
All ideas, facts, and conclusions that are not the author’s own intellectual property must be cited. Otherwise, it is plagiarism.
What are the differences between fixed and variable costs? Use a service provided by a government or a nonprofit agency as an example to explain the
differences.
Why are cost analysis and the breakeven point important to public services? What options are available to a nonprofit or governmental agency if a service
does not break even? What factors should be considered when selecting an option?
Assume you represent a government agency that contracts with a nonprofit agency for a public service. The nonprofit charges for the service and receives
funding from your agency. The nonprofit is not breaking even on the program and has asked your agency for an increase in the contract price. How would you
approach the issue? What information would you need?
How would you approach the same issue if you were the nonprofit agency losing money on the program? What are your alternatives?
Use the following as references:
a. The Basics of Public Budgeting and Financial Management by Charles E. Menifield (2017 or 2013). Both editions are acceptable
b. Case Studies in Public Budgeting and Financial Management edited by Aman Kahn and W. Bartley Hildreth, second edition (2003)
c. A Public Official’s Guide to Financial Literacy, four volumes, available on-line from Governing magazine