Tharp and Kostrivas is a law firm that is initiating an activity-based costing system. Ben Tharp, 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. Classify each of the activities listed by Ben Tharp as value-added or non-value-added and defend your classification. How much was value-added and how much was non-value-added?

Activities Hours Writing contracts and letters 1.0 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 course 2.5 Entertaining a prospective client 2.0 Answer Below:

Value-Added Activities Non-Value-Added Activities Questionable Classifications