Answer the one with red "x" Provide In-House or Outsource Decision, Services, Qualitative AspectsTony and Tina Roselli own and run TNT's Pizza Restaurant. Tony is responsible for managing the day-to-day aspects, hiring workers, and overseeing the kitchen, building,and grounds. He is the chief cook and handles all purchasing. Tina is the hostess and manages the front of the house (restaurant talk for the dining area). She schedulesthe wait staff, ensures that customers are well taken care of, and pitches in to bus tables and refill drinks as needed. Tina also handles the financial aspects of thebusiness and is responsible for bookkeeping and tax compliance. Two years ago, Tony and Tina became parents of a baby boy, Joseph, nicknamed "LJ" for Little Joe. Tinabrings LJ to work each day, and both Rosellis as well as the restaurant staff help out watching him. Recently, the restaurant has grown busier, so Tony and Tina expandedthe hours of operation. As a result, the staff rarely has any free time and Tina feels she has too much to handle. Tony and Tina are considering outsourcing theirbookkeeping and tax-filing needs to a local accountant.Typically, Tina spends 16 hours per month on bookkeeping and taxes. This increases to 44 hours in April. She uses a room off the kitchen as her office (a room that issorely needed for additional food storage given the expansion). If Tina continues to do the financial work, the restaurant will need to make up for 80 percent of her timeby hiring additional help at $11 per hour (hourly wage plus the restaurant's cost of Social Security, Medicare, and unemployment insurance taxes). The local accountantwill charge $27 per hour for bookkeeping services; he expects this service to average twelve hours per month. Taxes are filed quarterly for labor as well as state and localincome taxes. These tax forms should cost about $74 per quarter. The annual income tax filing is estimated to cost $375, payable at the time of filing in April.Required:1. Given the information, determine the annual cost of hiring the outside accountant.XWhat is the cost of the substitute labor if Tina continues to do the financial work? Round your answer to the nearest cent.XIf cost is the most important factor, should Tina do the bookkeeping and tax work in house or outsource it to the accountant?Continue to do the bookkeeping and tax work in house✓2. Which of the listed items is not a qualitative consideration that could affect the decision?Is the cost of having Tina continue to do the work less than the cost of hiring the accountant?✓

Annual cost of hiring the outside accountant means that the work has been outsourced by the company…

1. Given the information, determine the annual cost of hiring the outside accountant. $ X What is the cost of the substitute labor if Tina continues to do the financial work? Round your answer to the nearest cent.

1. Given the information, determine the annual cost of hiring the outside accountant. $ X What is the cost of the substitute labor if Tina continues to do the financial work? Round your answer to the nearest cent.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 15E: Tony and Tina Roselli own and run TNTs Pizza Restaurant. Tony is responsible for managing the...

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Provide In-House or Outsource Decision, Services, Qualitative Aspects Tony and Tina Roselli own and run TNT’s Pizza Restaurant. Tony is responsible for managing the day-to-day aspects, hiring workers, and overseeing the kitchen, building, and grounds. He is the chief cook and handles all purchasing. Tina is the hostess and manages the front of the house (restaurant talk for the dining area). She schedules the wait staff, ensures that customers are well taken care of, and pitches in to bus tables and refill drinks as needed. Tina also handles the financial aspects of the business and is responsible for bookkeeping and tax compliance. Two years ago, Tony and Tina became parents of a baby boy, Joseph, nicknamed “LJ” for Little Joe. Tina brings LJ to work each day, and both Rosellis as well as the restaurant staff help out watching him. Recently, the restaurant has grown busier, so Tony and Tina expanded the hours of operation. As a result, the staff rarely has any free time and Tina feels…
Provide In-House or Outsource Decision, Services, Qualitative Aspects Tony and Tina Roselli own and run TNT's Pizza Restaurant. Tony is responsible for managing the day-to-day aspects, hiring workers, and overseeing the kitchen, building, and grounds. He is the chief cook and handles all purchasing. Tina is the hostess and manages the front of the house (restaurant talk for the dining area). She schedules the wait staff, ensures that customers are well taken care of, and pitches in to bus tables and refill drinks as needed. Tina also handles the financial aspects of the business and is responsible for bookkeeping and tax compliance. Two years ago, Tony and Tina became parents of a baby boy, Joseph, nicknamed “LJ” for Little Joe. Tina brings LJ to work each day, and both Rosellis as well as the restaurant staff help out watching him. Recently, the restaurant has grown busier, so Tony and Tina expanded the hours of operation. As a result, the staff rarely has any free time and Tina feels…
9, Provide In-House or Outsource Decision, Services, Qualitative Aspects Tony and Tina Roselli own and run TNT’s Pizza Restaurant. Tony is responsible for managing the day-to-day aspects, hiring workers, and overseeing the kitchen, building, and grounds. He is the chief cook and handles all purchasing. Tina is the hostess and manages the front of the house (restaurant talk for the dining area). She schedules the wait staff, ensures that customers are well taken care of, and pitches in to bus tables and refill drinks as needed. Tina also handles the financial aspects of the business and is responsible for bookkeeping and tax compliance. Two years ago, Tony and Tina became parents of a baby boy, Joseph, nicknamed “LJ” for Little Joe. Tina brings LJ to work each day, and both Rosellis as well as the restaurant staff help out watching him. Recently, the restaurant has grown busier, so Tony and Tina expanded the hours of operation. As a result, the staff rarely has any free time and Tina…
Question Content Area Provide In-House or Outsource Decision, Services, Qualitative Aspects Tony and Tina Roselli own and run TNT’s Pizza Restaurant. Tony is responsible for managing the day-to-day aspects, hiring workers, and overseeing the kitchen, building, and grounds. He is the chief cook and handles all purchasing. Tina is the hostess and manages the front of the house (restaurant talk for the dining area). She schedules the wait staff, ensures that customers are well taken care of, and pitches in to bus tables and refill drinks as needed. Tina also handles the financial aspects of the business and is responsible for bookkeeping and tax compliance. Two years ago, Tony and Tina became parents of a baby boy, Joseph, nicknamed “LJ” for Little Joe. Tina brings LJ to work each day, and both Rosellis as well as the restaurant staff help out watching him. Recently, the restaurant has grown busier, so Tony and Tina expanded the hours of operation. As a result, the staff rarely has any…
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