1. What costs are relevant to each of the three alternatives: offshoring, relocating functions, and automating functions?
2. What are some of the nonfinancial considerations associated with each of these alternatives?
3. Based on George's assumptions that all of the remaining supervisor's costs are split 65% to accounts payable and 35% to bank reconciliation, and all incremental ongoing technology costs and postage costs are charged to accounts payable, calculate the annual savings per function through offshoring.
4. What would the impact be on AC-US's costs for the next three years if the two accounting functions are performed in India instead of in the U.S.? (Be sure to include severance in the one-time costs, using information from Table 6 and assume zero inflation).