Management Decision about a Supporting Service Function C 3. As the manager of grounds…

Management Decision about a Supporting Service Function C 3. As the manager of grounds maintenance for Latchey, a large insurance company in Missouri, you are responsible for maintaining the grounds surrounding the company’s three buildings, the six entrances to the property, and the recreational facilities, which include a golf course, a soccer field, jogging and bike paths, and tennis, basketball, and volleyball courts. Maintenance includes gardening (watering, planting, mowing, trimming, removing debris, and so on) and land improvements (e.g., repairing or replacing damaged or worn concrete and gravel areas). Early in January, you receive a memo from the president of Latchey requesting information about the cost of operating your department for the last 12 months. She has received a bid from Xeriscape Landscapes, Inc., to perform the gardening activities you now perform. You are to prepare a cost report that will help her decide whether to keep gardening activities within the company or to outsource the work.

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