Scrooge Ltd is looking to outsource its accounts department. Ghost Ltd has approached Scrooge and offered to

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Scrooge Ltd is looking to outsource its accounts department. Ghost Ltd has approached Scrooge and offered to provide the service for £190,000. Scrooge Ltd ascertains the following costs are involved internally:

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Calculate whether or not Scrooge Ltd should accept Ghost’s bid. State any assumptions you have made and other factors you might take into account.

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Accounting

ISBN: 9781119977186

3rd Edition

Authors: Michael J. Jones

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Question Posted: May 20, 2024 09:01 AM

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Scrooge Ltd is looking to outsource its accounts department. Ghost Ltd has approached Scrooge and offered to

Question:

Clerical labour Supervisory labour Direct materials Variable overheads Fixed overheads 10,000 hours at 8 6,000 hours at 10 25,000 3 per clerical labour hour 8,000

Step by Step Answer:

So on the straight accounting calculation Scrooge would outsource The chief assum...View the full answer

Accounting

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