FastBucks Has Offered to Set Up a Concentration Banking System

question 78

Multiple Choice

FastBucks has offered to set up a concentration banking system that will save 3 days of mail float and 1 day of processing float. Your receivables average $20,000 per day and the opportunity cost of funds is 6%. How much would you be willing to pay FastBucks annually to administer the system perpetually?

• A) $2,400
• B) $4,800
• C) $40,000
• D)$80,000

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Definitions:

Compensation Policy

A set of guidelines that an organization follows to determine how employees will be compensated, including salaries, benefits, and bonuses.

Pay Inequities

Situations where there is an unfair or unequal distribution of pay among employees, often due to discrimination based on gender, race, or other factors.

Annual Payroll

The total amount of money paid to employees by a business over the course of a year, including wages, salaries, bonuses, and deductions.

Job Evaluation

A systematic method for determining the relative worth of a job in relation to other jobs within an organization.