Tharp and Kostrivas is a law firm that is initiating an activity-based costing system. Ben Tharp, the
Question:
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 court................................. 2.5
Entertaining a prospective client..................... 2.0
Instructions
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 time and how much was non–value-added?
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ValueAdded Activities Hours Writing contracts and letters Taking depositio...View the full answer
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Related Book For 
Managerial Accounting Tools for business decision making
ISBN: 978-0470477144
5th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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