Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are a management accountant for Time Treasures Company, whose company has recently signed an outsourcing agreement with Spotiess, Inc, a Janitorial service company, Spotless

image text in transcribed
You are a management accountant for Time Treasures Company, whose company has recently signed an outsourcing agreement with Spotiess, Inc, a Janitorial service company, Spotless will provide all of Time Treasures' janitorial services, including sweeping floors, hauling trash, washing windows. stocking restrooms, and performing minor repairs. Time Treasures will be billed at an hourly rate based on the type of service performed. The work of common laborers (sweeping, hauling trash) is to be billed at $8 per hour, More skilled (repairs) and more dangerous work (washing outside windows on the 23rd floor) are to be billed at $18, per hour, Supervisory time is to be billed at $20 per hour, Spotless will submit monthly imvices, which will show the number and types of hours for which Time Treasures is being charged. The outsourcing contract is simple and straightforward. A. What are some of the internal control problemsyou foresee as a result of outsourcing the janitorial service with this contract? B. Explain recommendations to control risk that would you suggest after reviewing the contract

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Finance For Your Small Business

Authors: Eric James Burton, Steven M Bragg

1st Edition

9780471323600

More Books

Students also viewed these Accounting questions

Question

What do you believe was the cause of the turnover problem?

Answered: 1 week ago