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Assume That the Accounts Payable Department of a Company Has

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Assume that the accounts payable department of a company has 5 clerks; each one is paid $25,000 per year ($125,000 total clerical salaries). On average, the clerks spend:
20% of their time on processing payments30% of their time matching invoices, receiving documents, and billing statement
50% of their time correcting errors in the various documents
In addition, long distance telephone costs of $1,700 are directly traced to the activity "correcting errors."
Assume that the accounts payable department of a company has 5 clerks; each one is paid $25,000 per year ($125,000 total clerical salaries). On average, the clerks spend: 20% of their time on processing payments30% of their time matching invoices, receiving documents, and billing statement 50% of their time correcting errors in the various documents In addition, long distance telephone costs of $1,700 are directly traced to the activity  correcting errors.


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