5.1. Hetauda Cement Company has a twice a month payroll of Rs 3, 00,000. The firm...

 

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5.1. Hetauda Cement Company has a twice a month payroll of Rs 3, 00,000. The firm is considering changing monthly payroll to reduce the cost of writing checks and similar expenses which Rs 2,000 per payroll. The firm has a 9 percent opportunity cost. Required: a. What are average accruals under present payroll system? b. What is a total annual payroll expense under present payroll system? c. What will be average accruals under proposed plan? d. What will be total annual payroll expense under proposed plan? e. What will be total annual saving if wages were paid monthly instead if twice a month? 5.1. Hetauda Cement Company has a twice a month payroll of Rs 3, 00,000. The firm is considering changing monthly payroll to reduce the cost of writing checks and similar expenses which Rs 2,000 per payroll. The firm has a 9 percent opportunity cost. Required: a. What are average accruals under present payroll system? b. What is a total annual payroll expense under present payroll system? c. What will be average accruals under proposed plan? d. What will be total annual payroll expense under proposed plan? e. What will be total annual saving if wages were paid monthly instead if twice a month?

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To solve the problem well follow these steps a Calculate the average accruals under the present payr... View the full answer