Question

Decisions on whether to outsource services such as payroll accounting and systems development are much like...

Decisions on whether to outsource services such as payroll accounting and systems development are much like make or buy decisions. What cost factors should influence the decision on whether to outsource payroll functions?

Homework Answers

Answer #1

Strategy Related Factors -If focus on strategy, various factors influence the outsourcing decisions like increasing flexibilityand profitability in order to gain competitive advantage.

Quality Related Factors-if focus on quality, various factors influence the outsourcing decisions like improve responsivenessafter delivery of service and also gives the quick services to the organization when they required immediate hiring .

Innovation Related Factors

Innovativeness motivates an organization to focus on core competencies, provides moreinnovative and novel ideas about recruitment.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Frito-Lay Outsourcing Decision Analysis Retain Outsource In-House to FMS Difference Annual leasing fee for software $8,000...
Frito-Lay Outsourcing Decision Analysis Retain Outsource In-House to FMS Difference Annual leasing fee for software $8,000 $ — $8,000 Annual maintenance of trucks 145,500 — 145,500 Total annual salaries of five other fleet management employees 150,000 — 150,000 Fleet Management Services’ annual fee — 290,000 (290,000) Total cost / cost savings $303,500 $290,000 $13,500 Betsy Gonzalez manages a fleet of 200 delivery trucks for Frito−Lay. Gonzalez must decide if the company should outsource the fleet management function. If she outsources...
Montel Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides...
Montel Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 10,500 units of subcomponent JXY per month. Direct materials costs $38,500 Direct labour costs 31,100 Variable overhead 14,800 Fixed overhead* 12,000 *Fixed overhead includes $4,200 supervisor’s salary. International Firm agrees to supply Montel with 10,500 units per month for a total cost of $135,500. If subcomponent JXY is outsourced, Montel will be able to increase the production and...
Montel Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides...
Montel Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 10,900 units of subcomponent JXY per month. Direct materials costs $39,200 Direct labour costs 30,800 Variable overhead 14,100 Fixed overhead* 13,600 *Fixed overhead includes $4,900 supervisor’s salary. International Firm agrees to supply Montel with 10,900 units per month for a total cost of $131,700. If subcomponent JXY is outsourced, Montel will be able to increase the production and...
This case assignment draws from the Business Information Systems and the Systems Acquisition and Development modules...
This case assignment draws from the Business Information Systems and the Systems Acquisition and Development modules (Chapters 5 to 8). Its purpose is to provide you with experience in analyzing organizational information systems, making recommendations to improve these systems, and formulating a plan to execute on your recommendations. 1. Recommend one of your alternatives that is the best solution to the main issue and justify your recommendation. Your justification should be based on the key decision criteria and you must...
1.3 evaluate the factors which influence the nature and structure of accounting systems Jock Daniels has...
1.3 evaluate the factors which influence the nature and structure of accounting systems Jock Daniels has a small supermarket. He has been doing this for some years and has decided to start using computers. He has heard there are different computerised accounting systems available. He gives you the following information: - it must be cheap but he is willing to pay more if the system is good. - he would like to get information about inventory. - he would like...
1.The value added will determine whether goods or services will be seen as an order qualifier....
1.The value added will determine whether goods or services will be seen as an order qualifier. An order qualifier is when... Select one: a. Customers ask others to buy the product for them b. Customers decide beforehand that they will not buy a product c. Customers returns a product that are faulty 2.Core functions in all organisations are: Select one: a. marketing, accounting, personnel b. marketing, finance, operations c. marketing, personnel, operations d. product/services development, operations, marketing (including sales) 3.Operations...
1. Project managers must frequently decide whether to obtain needed products and services from internal sources...
1. Project managers must frequently decide whether to obtain needed products and services from internal sources or from external sources. This decision is often referred to as the make-or-buy decision. Briefly identify and explain at least three reasons that support the decision to “make” the products and at least three reasons that support the decision to “buy” the products. 2. Identify two actions a project manager can take to avoid terminating a project early. If these actions aren’t effective, how...
Restructure, Outsource or Redesign? Choosing a strategic direction and evaluating the effectiveness of HR are only...
Restructure, Outsource or Redesign? Choosing a strategic direction and evaluating the effectiveness of HR are only the first steps in making an organization competitive in the global environment. The next step is figuring out how to improve human resources based on the strategy and issues that may have been raised during the evaluation process. The effectiveness of HRM can be improved in three main ways. First, a company may decide to restructure the HR function to increase its efficiency. Next,...
A constraint is always a tangible thing affecting our business. True / False In deciding on...
A constraint is always a tangible thing affecting our business. True / False In deciding on whether to accept a special order, you want to consider both the additional revenues as well as the additional costs. True / False Avoidable fixed costs should be considered in a decision to make or buy a component. True False The cost of equipment purchased last year should be included in the cost of an alternative when deciding to make or buy a component....
JDI, Inc. is trying to decide whether to make or buy a part (#J-45FPT). Purchasing the...
JDI, Inc. is trying to decide whether to make or buy a part (#J-45FPT). Purchasing the part would cost $1.50 each. If they design and produce it themselves, it will result in a per unit cost of $1.00. However, the design investment would be $50,000. Further, they realize that for this type of part, there is a 25% chance that the part will need to be redesigned at an additional cost of $50,000. Regardless of whether they make or buy...