Outsourcing – Knowsia

BMIS – L1 – QE8 – Cost Management

List areas where production and operating cost economies can be achieved.

Question

Cost economies

The economies in production and operating costs can be achieved by focusing in the following areas:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Economies, Inventory Management, Outsourcing, Process Optimization
Level: Level 1

Topic: Operations strategy

SCS – L3 – Q11 – Strategy Implementation

Discuss the importance of effective communication and strategic leadership in successful strategy implementation.

Question

(a) During strategy implementation, important management issues need to be reviewed for their appropriateness for the new strategy. Many organizations fail to achieve their strategic objectives not because they do not develop the right strategies but because many issues are not resolved during the implementation. They may not have the right organizational structure, a fitting culture, an efficient leadership while communication may be poor.

Required:

Discuss the importance of each of the following in successful strategy implementation:

(i) Effective communication

(ii) Strategic leadership (b)

You have been consulted by the CEO of Vision Designs, a designing and publishing company, to clarify some strategic management terminologies to aid him to finish a proposal for consideration by the company’s board of directors.

Required:

Using relevant examples, explain the following types of modular organization structures.

(i) Outsourcing

(ii) Offshoring

(iii) Shared servicing

Answer

Find Related Questions by Tags, levels, etc.

Tags: Modular Organization, Offshoring, Organizational Structure, Outsourcing, Shared Servicing
Level: Level 3

Topic: Functional strategies

MA – L2 – Q44 – Relevant cost and revenue

Recommend whether TechLink Solutions should buy new equipment or outsource electronic modules for 400,000 units annually.

Question

TechLink Solutions Limited manufactures and sells routers. It manufactures its own electronic modules (EM), an important part of the router. The present cost to manufacture an EM is as follows:

	GH¢
Direct material	250
Direct labour	300
Variable overheads	150
Fixed overheads
Depreciation	100
General overheads	150
Total cost per unit	950

The company manufactures 400,000 units annually. The equipment being used for manufacturing EM has worn out completely and requires replacement. The company is presently considering the following options:
(A) Purchase new equipment which would cost GH¢ 240 million and have a useful life of six years with no salvage value. The company uses straight-line method of depreciation. The new equipment has the capacity to produce 600,000 units per year. It is expected that the use of new equipment would reduce the direct labour and variable overhead cost by 20%.
(B) Purchase from an external supplier at GH¢ 730 per unit under a two-year contract.
The total general overheads would remain the same in either case. The company has no other use for the space being used to manufacture the EMs.

Required:
(a) Which course of action would you recommend to the company assuming that 400,000 units are needed each year? (Show all relevant calculations)

(b) What would be your recommendation if the company’s annual requirements were 600,000 units?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost analysis, Equipment replacement, Incremental costs, Make-or-Buy Decision, Manufacturing costs, Outsourcing, Relevant costs
Level: Level 2

Topic: Decision making techniques, Relevant cost and revenue

AA – L2 – Q57 – Internal Audits

Explain the usefulness of internal audit work, quality factors, and audit evidence for outsourced functions at SkyHigh Airlines.

Question

SkyHigh Airlines is an airline. The company owns some of its fleet of aircraft. Other aircraft are leased from third parties. SkyHigh Airlines has an internal audit function that has recently expanded. Your firm is the external auditor to SkyHigh Airlines. Your firm has been asked to investigate the extent to which it may be able to rely on the work of internal Angelfire International

Required:

(a) Explain why the work of internal auditors, in the three areas noted above, is likely to be useful to you as the external auditor. (9 marks)

(b) Explain how the quality of the internal audit function is likely to influence the extent of your reliance on internal audit work. (5 marks)

(c) Describe the audit evidence you will seek relating to internal controls over the outsourced functions (in-flight catering and payroll). (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Evidence, Audit Procedures, External Audit, Financial Statement Assertions, Internal Audit, Internal controls, Outsourcing
Level: Level 2

Topic: Internal Audits

AAA – L3 – Q46 – Internal audit

Assess the need for an internal audit function at Adepa Ltd, considering its growth and technology adoption.

Question

Adepa Ltd, a fruit processing company, has been in operation for many years. It has managed to grow the business over the years and now has eight branches, four in rural areas and four in urban towns, in addition to the head office. The management and those charged with governance are looking forward to the company adopting the latest technology in production – Advanced Technology Manufacturing (ATM) and marketing and sales through the internet.
During the last audit of the financial statements of the company, the Managing Director suggested to the Senior Partner an assessment of the need for an internal audit function in the company. You were the audit manager who led the engagement team to do the audit. The Senior Partner has therefore asked you to carry out the assignment to assess the need for an internal audit in Adepa Ltd.
Required:
Draft a report to the Senior Partner on the assessment of the need for an internal audit function for Adepa Ltd., highlighting the factors to be considered in such assessment.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assessment, Internal Audit, Outsourcing
Level: Level 3

Topic: Internal Audit and Outsourcing

AAA – L3 – Q41 – Internal and External Audit

Explain differences between internal and external audit and discuss outsourcing internal audit to external auditors.

Question

Required
(a) Explain the difference between the internal and external audit functions.
(b) List the advantages and disadvantages of a company outsourcing its internal audit function to its external auditors.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit functions, External Audit, Internal Audit, Outsourcing, Professional responsibilities
Level: Level 3

Topic: Internal Audit and Outsourcing

Tag (SQ): Outsourcing

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

BMIS – L1 – QE8 – Cost Management

List areas where production and operating cost economies can be achieved.

SCS – L3 – Q11 – Strategy Implementation

Discuss the importance of effective communication and strategic leadership in successful strategy implementation.

MA – L2 – Q44 – Relevant cost and revenue

Recommend whether TechLink Solutions should buy new equipment or outsource electronic modules for 400,000 units annually.

AA – L2 – Q57 – Internal Audits

Explain the usefulness of internal audit work, quality factors, and audit evidence for outsourced functions at SkyHigh Airlines.

AAA – L3 – Q46 – Internal audit

Assess the need for an internal audit function at Adepa Ltd, considering its growth and technology adoption.

AAA – L3 – Q41 – Internal and External Audit

Explain differences between internal and external audit and discuss outsourcing internal audit to external auditors.

Our offerings

Community

Contact Info

Customer

Get In Touch

Tag (SQ): Outsourcing

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

BMIS – L1 – QE8 – Cost Management

List areas where production and operating cost economies can be achieved.

You're reporting an error for "BMIS – L1 – QE8 – Cost Management"

SCS – L3 – Q11 – Strategy Implementation

Discuss the importance of effective communication and strategic leadership in successful strategy implementation.

You're reporting an error for "SCS – L3 – Q11 – Strategy Implementation"

MA – L2 – Q44 – Relevant cost and revenue

Recommend whether TechLink Solutions should buy new equipment or outsource electronic modules for 400,000 units annually.

You're reporting an error for "MA – L2 – Q44 – Relevant cost and revenue"

AA – L2 – Q57 – Internal Audits

Explain the usefulness of internal audit work, quality factors, and audit evidence for outsourced functions at SkyHigh Airlines.

You're reporting an error for "AA – L2 – Q57 – Internal Audits"

AAA – L3 – Q46 – Internal audit

Assess the need for an internal audit function at Adepa Ltd, considering its growth and technology adoption.

You're reporting an error for "AAA – L3 – Q46 – Internal audit"

AAA – L3 – Q41 – Internal and External Audit

Explain differences between internal and external audit and discuss outsourcing internal audit to external auditors.

You're reporting an error for "AAA – L3 – Q41 – Internal and External Audit"

Our offerings

Community

Contact Info

Customer

Get In Touch

admin

Pick a Form