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A new manufacturing firm has been growing very rapidly.

A new manufacturing firm has been growing very rapidly. Both its output and hired staff have increased dramatically, and it's looking like the business will have to physically expand sometime in the near future.

The company's managing director decides to outsource the payroll of the business to an external provider.

What are his likely reasons for making this decision?

A.

He is finding it difficult to keep on top of all of the support activities he has to provide.

B.

He is finding managing the payroll complicated and time consuming.

C.

Payroll requires an expertise on tax and legislation that he does not have in house.

D.

It will allow him to focus on other priorities.

E.

There is more confidentiality when using external providers.

F.

Better management information will be supplied.

G.

It will improve the accuracy in the payroll.

CIMA E1 Summary

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  • Product: E1
  • Update on: Jul 29, 2025
  • Questions: 336
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