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Drop down menu for 4 of the activities - Thayne Company has 37 clerks that work in its Accounts Payable Department. A study revealed the
Drop down menu for 4 of the activities -
Thayne Company has 37 clerks that work in its Accounts Payable Department. A study revealed the following activities and the relative time demanded by each activity: Activities Percentage of Clerical Time Comparing purchase orders and receiving orders and invoices 12% Resolving discrepancies among the three documents 74 5 Preparing checks for suppliers Making journal entries and mailing checks 9 The average salary of a clerk is $40,500. Required: Classify the four activities as value-added or non-value-added, and calculate the clerical cost of each activity. Comparing documents Resolving discrepancies Preparing checks Mailing checks Non-value-added Value-addedStep by Step Solution
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