Question

Schools across Ghana have been closed down. This is to curb the spread of the fast-spreading coronavirus (COVID- 19). The news portal, the Ghanaweb reported this on the 16th March 2020. Since then, school fees and feeding fee collection from parents has come to a standstill. “Yet the payment of bills such as salaries, rent, electricity bill, water bill has not come to a standstill” lamented Mr. Amuzu, the headmaster of Twinkle Tots International school in a telephone conversation with Mr. Berko- the school’s accountant. Mr. Berko decided to offer some advice to Mr. Amuzu on how the school could settle its outstanding bills due in the next six months. This way, the school could continue to stay afloat. What advice do you think Mr. Berko offered to Mr. Amuzu on settling the school's bills? Discuss comprehensively.

Answer 1

The schools can reduce upon its variable expenses to face off with the the economic crisis which is being triggered from the health crisis.

This can be done through various steps-

A. The school can cut down on its salaries of staff as well as teachers so that there would be a decrease in the variable cost of the schools during such tough Times.

B. School can also reallocate sum of its fixed expenses in order to reduce the overall cost associated with its operations.

C. School can also provide online services in order to keep itself hedged from any kind of Survival crisis.

D. Staff layoff and cutting onto other human resources can also reduce the cost of schools to a large extent.

E. Schools can also adopt various payment schemes which are promoting legging of its payments and which would be helpful when the school will reopen and they would recover the fees from the the students.

These are the way the school can survive the crisis and it can stay afloat.