A Local Accounting Firm Has Offered to Do All the Billings

question 132

Essay

A local accounting firm has offered to do all the billings and collections of a general practitioner.The annual fee will be $12,000.The service will replace the part-time bookkeeper who works for $12 an hour, 10 hours a week.Because outsourcing accounting activities will take place away from the office, the doctor estimates that she will have one additional hour a week to see patients.Normally she sees four patients an hour with an average visit fee of $100.The office is open 50 weeks a year.Since the accounting service will maintain all records in its office, the doctor will no longer need to rent storage space for the office files.The storage space rents for $150 a month.Required:Determine whether or not the doctor should accept the offer to use the accounting service.

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Definitions:

Democratic Leadership Style

A leadership approach that involves the equal participation of all members in decision-making processes.

Group Discussion

A method of bringing a group of individuals together to explore a subject or solve a problem communally.

Leadership

An individual’s ability to motivate and influence others to contribute to their group’s success.

Social Relationships

Connections between individuals in a society, which can provide emotional support, friendship, and a source of social integration.