Assignment 3 Management Accounting Case West Island Products
Running Head: FINANCAL MANAGEMENT
Financial Management
Answer No. 2 First advantage of outsourcing is that the organization is in the position to ensure that it is able to complete its activities in a swift and expert manner. Second advantage of outsourcing is that it helps organization to concentrate on core process instead of supporting processes carried out by it. Third advantage of outsourcing is that the organization will be in the position to ensure that it is engaged in activities of risk sharing over a period of time (Carroll, 2007). First disadvantage of outsourcing is that the organization will have risk of exposing confidential data. Second disadvantage of outsourcing is that it can cause some problem to organization in synchronizing the deliverables. Third disadvantage of outsourcing is that it is not able to have appropriate focus on its customers over a period of time. First advantage of in-sourcing is that it helps the organization to make sure that it is engaged in carrying out its activities by making use of business skills or equipment at a rate lower in comparison to outsourcing. Second advantage of in-sourcing is that the organization is able to better manage the operations as the employees are able to carry out the job properly. Third advantage of in-sourcing is that the organization is able to ensure that it keeps better customer satisfaction and more benefits regarding reputation of employees. First disadvantage of in-sourcing is that the organization will not be in the position to ensure that it focuses on its core activities. Second disadvantage of in-sourcing is that the organization will have to incur more cost in carrying out its activities at the time when, the organization can get its activities carried out in less cost. Third disadvantage of in-sourcing is that it does not help organization to share risks. In the course of present situation, the organization shall be required to incur an opportunity cost
Financial Management
Answer No. 2 First advantage of outsourcing is that the organization is in the position to ensure that it is able to complete its activities in a swift and expert manner. Second advantage of outsourcing is that it helps organization to concentrate on core process instead of supporting processes carried out by it. Third advantage of outsourcing is that the organization will be in the position to ensure that it is engaged in activities of risk sharing over a period of time (Carroll, 2007). First disadvantage of outsourcing is that the organization will have risk of exposing confidential data. Second disadvantage of outsourcing is that it can cause some problem to organization in synchronizing the deliverables. Third disadvantage of outsourcing is that it is not able to have appropriate focus on its customers over a period of time. First advantage of in-sourcing is that it helps the organization to make sure that it is engaged in carrying out its activities by making use of business skills or equipment at a rate lower in comparison to outsourcing. Second advantage of in-sourcing is that the organization is able to better manage the operations as the employees are able to carry out the job properly. Third advantage of in-sourcing is that the organization is able to ensure that it keeps better customer satisfaction and more benefits regarding reputation of employees. First disadvantage of in-sourcing is that the organization will not be in the position to ensure that it focuses on its core activities. Second disadvantage of in-sourcing is that the organization will have to incur more cost in carrying out its activities at the time when, the organization can get its activities carried out in less cost. Third disadvantage of in-sourcing is that it does not help organization to share risks. In the course of present situation, the organization shall be required to incur an opportunity cost
References: Brigham, E. & Ehrhardt, M. (2007). Financial Management: Theory & Practice. (12th ed.). Cengage Learning. Carroll, V.N. (2007). Financial Management for Pharmacists: A Decision-making Approach. Lippincott Williams & Wilkins.