Brown and Davis is a law firm that is initiating an activity-based costing system. Sam Brown, 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 Sam Brown as value-added or non-value-added. Activities Writing contracts and letters Attending staff meetings Taking depositions Doing research Traveling to/from court Contemplating legal strategy Eating lunch Litigating a case in court Entertaining a prospective client Value-added time Hours 1.42 0.49 Non-value-added 0.95 1.03 1.01 1.10 1.02 2.57 1.60 hours < < hours < < < How much was value-added time? (Round answer to 2 decimal places, e.g. 2.13.) < < > How much was non-value-added time? (Round answer to 2 decimal places, e.g. 2.13.)
Brown and Davis is a law firm that is initiating an activity-based costing system. Sam Brown, 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 Sam Brown as value-added or non-value-added. Activities Writing contracts and letters Attending staff meetings Taking depositions Doing research Traveling to/from court Contemplating legal strategy Eating lunch Litigating a case in court Entertaining a prospective client Value-added time Hours 1.42 0.49 Non-value-added 0.95 1.03 1.01 1.10 1.02 2.57 1.60 hours < < hours < < < How much was value-added time? (Round answer to 2 decimal places, e.g. 2.13.) < < > How much was non-value-added time? (Round answer to 2 decimal places, e.g. 2.13.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Brown and Davis is a law firm that is initiating an activity-based costing system. Sam Brown, 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 Sam Brown as value-added or non-value-added.
Activities
Writing contracts and letters
Attending staff meetings
Taking depositions
Doing research
Traveling to/from court
Contemplating legal strategy
Eating lunch
Litigating a case in court
Entertaining a prospective client
Value-added time
Hours
1.42
Non-value-added
0.49
0.95
1.03
1.01
1.10
1.02
2.57
1.60
hours
>
>
hours
>
How much was value-added time? (Round answer to 2 decimal places, e.g.2.13.)
<
>
>
How much was non-value-added time? (Round answer to 2 decimal places, e.g. 2.13.)
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