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 nonvalue- added?
| Activities | Hours |
| Writing contracts and letters | 1.00 |
| Attending staff meetings | 0.50 |
| Taking depositions | 1.00 |
| Doing research | 1.00 |
| Traveling to/from court | 1.00 |
| Contemplating legal strategy | 1.00 |
| Eating lunch | 1.00 |
| Litigating a case in course | 2.50 |
| Entertaining a prospective client | 2.00 |
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