Connally Company's Payroll Department required that every time card be checked twice to ensure pay accuracy. The company has 1,000 employees and has determined that the checks cost the company $8,000 per year. It has decided to change this policy and only check those names that appear on the exceptions report and a random check on the entire payroll. Currently, only 15% of the payroll is evaluated each payroll. Determine the inspection activity cost per employee on the 1,000 employees both before and after the improvement.

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The Answer of Connally Company's Payroll Department required that every time card be checked twice to ensure pay accuracy. The company has 1,000 employees and has determined that the checks cost the company $8,000 per year. It has decided to change this policy and only check those names that appear on the exceptions report and a random check on the entire payroll. Currently, only 15% of the payroll is evaluated each payroll. Determine the inspection activity cost per employee on the 1,000 employees both before and after the improvement.

Connally Company's Payroll Department Required That Every Time Card Be