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due nuueU ACLIVILIES. NON Value Audeu COSL Thayne Company has 36 clerks that work in its Accounts Payable Department. A study revealed the following activities
due nuueU ACLIVILIES. NON Value Audeu COSL Thayne Company has 36 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 14% Resolving discrepancies among the three documents 74 Preparing checks for suppliers 6 Making journal entries and mailing checks 6 The average salary of a clerk is $44,500. 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
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