Estimate the amount of money accounts payable and cash disbursements departments could save if a basic batch-processing system were implemented. Assume that the clerical workers

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Estimate the amount of money accounts payable and cash disbursements departments could save if a basic batch-processing system were implemented. Assume that the clerical workers cost the firm $12 per hour, that 13,000 vouchers are prepared, and that 5,000 checks are written per year. Assume that total cash disbursements to vendors amount to $5 million per year. Because of sloppy bookkeeping, the current system takes advantage of only about 25 percent of the discounts vendors offer for timely payments. The average discount is 2 percent if payment is made within 10 days. Payments are currently made on the 15th day after the invoice is received. Make your own assumptions (and state them) regarding how long specific tasks will take. Also discuss any intangible benefits of the system.

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