Arasu Venkatesh

The Horizon Insurance Case

Name
: Arasu Venkatesh
Subject
: Costing & Control Systems
Assignment Title : The Horizon Insurance Case

ASSUMPTIONS
In the considered four year contract period, custom supplies have not been

replenished.
Revencue costs from the sale of equipment when G-Art is awarded the

contract, is considered as an income to the Department.

Depreciation is not considered.
Incurred costs are not considered.

RECOMMENDED ACTION
As illustrated in the attached worksheet, Horizon Insurance would incur a
savings of $60000 if the publishing activity is done inside the company.
ADDITIONAL FINANCIAL INFORMATION REQUIRED

G-Arts quotations for the years following the initial four year contract period.
Maintenance cost of equipment.
Cost of new equipment.
General trend in labour and manager salaries.
Cost of materials forecast

Page 1 of 4

Arasu Venkatesh

The Horizon Insurance Case

ADDITIONAL NON-FINANCIAL INFORMATION REQUIRED

Qualitative assessment of finished products of Internal Publishing Department

& G-Art.
Effect of lay-offs on company morale.

Page 2 of 4

Arasu Venkatesh

The Horizon Insurance Case

Page 3 of 4

Arasu Venkatesh

The Horizon Insurance Case

Page 4 of 4