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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
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: The process received, adjusted, and paid 7,800 claims during the period. All claims were treated identically in this process. add 5% to the "receiving claim" activity cost. a. Develop a table showing the percent of individual activity cost to the total process cost. Round the percents to the nearest whole number, if required. Statewide Insurance Company Individual activity cost to the total process cost b. Determine the average total process cost per claim payment, assuming 7,800 total claims. Round to the nearest whole dollar. b. Determine the average total process cost per claim payment, assuming 7,800 total claims. Round to the nearest whole dollar. per paid claim Statewide Insurance Company Changes in the activity costs d. Estimate the average cost per claim payment, assuming that the changes proposed by management are enacted for 7,800 total claims. Round to the nearest cent. per paid claim
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