Assume That the Accounts Payable Department of a Company Has

Essay

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 payments
30% 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."