Moss, Inc Currently Processes Payroll in Its Accounting Department, Which Costs

Multiple Choice

Moss, Inc. currently processes payroll in its accounting department, which costs the following per month: Moss could use a payroll processing firm instead, which would cost $1,350 per month, but the firm would provide all supplies. If Moss used the outside firm, the accountants who currently process payroll would be reassigned to other accounting tasks. How much would monthly costs be affected if Moss switched to the payroll processing firm?

A) Increase $875
B) Decrease $475
C) Increase $225
D) Decrease $225