Charted Travel & Tours (CTT) is studying whether to outsource its human resources (HR) activities. Salaried professionals who earn GH¢195,000 would be terminated; in contrast, administrative assistants who earn GH¢60,000 would be transferred elsewhere in the organisation. Miscellaneous departmental overhead (e.g. supplies, copy charges, overnight delivery) is expected to decrease by GH¢15,000, and GH¢17,500 of corporate overhead cost, previously allocated to HR, would be picked up by other departments. If CTT can secure needed HR services locally for GH¢205,000, should CCT outsource? And how much would CCT benefit (or lose) by outsourcing?

Charted Travel & Tours (CTT) is studying whether to outsource its human resources (HR) activities. Salaried professionals who earn GH¢195,000 would be terminated; in contrast, administrative assistants who earn GH¢60,000 would be transferred elsewhere in the organisation. Miscellaneous departmental overhead (e.g. supplies, copy charges, overnight delivery) is expected to decrease by GH¢15,000, and GH¢17,500 of corporate overhead cost, previously allocated to HR, would be picked up by other departments. If CTT can secure needed HR services locally for GH¢205,000, should CCT outsource? And how much would CCT benefit (or lose) by outsourcing?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterE: Departmental Accounting

Section: Chapter Questions

Problem 3P

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