Process Activity Analysis for a Service Company Statewide Insurance Company has a process for making payments on insurance claims as follows: An activity analysis revealed that the cost of these activities was as follows: Line Item Description Amount Receiving claim $58,000 Adjusting claim 174,000 Paying claim 58,000 Total $290,000 This process includes only the cost of processing the claim payments, not the actual amount of the claim payments. The adjusting activity involves verifying and estimating the amount of the claim and is variable to the number of claims adjusted. The process received, adjusted, and paid 5,800 claims during the period. All claims were treated identically in this process. To improve the cost of this