Lasso and Markowitz is a law firm that is initiating an activity-based costing system. Sam Lasso, the senior partner and strong supporter of ABC, has prepared the following list of activities performed by a typical attorney in a day at the firm.

Instructions Classify each of the activities listed by Sam Lasso as value-added or non–value-added and defend your classification. How much was value-added time and how much was non–valueadded?

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Activities Writing contracts and letters Hours 1.5 Attending staff meetings 0.5 Taking depositions 1.0 Doing research 1.0 Traveling to/from court 1.0 Contemplating legal strategy 1.0 Eating lunch 1.0 Litigating a case in court Entertaining a prospective client 32 2.5 1.5