Brenda Barnes has just been appointed the new director of Youth Hot-Line, a not-for-profit organization that operates a phone bank for teen-age individuals experiencing emotional difficulties. The phones are staffed by qualified social workers and psychologists who are paid on an hourly basis. Barnes took the following actions in the first week on her new job. Indicate whether the actions represent cost understanding (CU), cost containment (CC), cost avoidance (CA), or cost reduction (CR). Some actions may have more than one implication; if they do, indicate the reason.
a. Increased the advertising budget appropriation for the hotline.
b. Exchanged the more expensive push-button, cream-colored, designer telephones for regular push-button desk telephones.
c. Eliminated the call-forwarding feature installed on all telephones because Youth Hot-Line will now be staffed 24 hours a day.
d. Eliminated two paid clerical positions and replaced these individuals with volunteers.
e. Ordered blank notepads for the counselors to keep by their phones; the old notepads (stock now depleted) had the Youth Hot-Line logo and address printed on them.
f. Negotiated a new contract with the telephone company. Youth Hot-Line will now pay a flat rate of $100 per month regardless of the number of telephones installed.
The previous contract charged the organization $10 for every telephone. At the time that contract was signed, Youth Hot-Line had only 10 telephones. With the increased staff, Barnes plans to install at least five additional telephones.