Question

1. Answer the following questions:

a. What are some common expenses in a child care program?

b. Explain the difference between fixed costs and variable costs.

c. How much should you plan to budget for staffing costs?

d. What is the most important element of keeping a child care program financially healthy?

e. How can you ensure that your budget will balance and you will not lose money?

Answer 1

1.a.The common expenses in a child care program are

• The salary which is offered to the professionals a f care givers contribute about 80%
• The rest of the expense is funded on the infrastructure , maintainace, buying child care equipments .

b.Fixed cost in simple refers to the fixed amount which has to be paid or reimbursed without depending on the quantity of production or its output

Variable cost in simple refers to the alteration in the cost which can be modified based on the output .

c. The staffing budget has to be planned in a way by segregating the novice staff, experienced staff.50/20/30 budget plan can be done .

d. It is very important to keep the child care program financially strong because any untoward incidents or accidents ,implementation of new changes as per the current or updated standards provided by the goverment, meeting medical emergency ,etc., In simple emergency situation can be handled best in case of good financially healthy .