Lasso and Markowitz is a law firm that is initiating an activity-based costing system. Sam Lasso, 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.

Activities Hours

Writing contracts and letters ................1.5

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 ..........1.5

Instructions

Classify each of the activities listed by Sam Lasso as value-added or non–value-added and defend your classification. How much was value-added time and how much was non–value-added?