Thayne Company has 30 clerks that work in its Accounts Payable Department. A study revealed the following

Question:

Thayne Company has 30 clerks that work in its Department. A study revealed the following activities and the relative time demanded by each activity:

Thayne Company has 30 clerks that work in its Accounts

Required:
Classify the four activities as value-added or non-value-added, and calculate the clerical cost of each activity. For non-value-added activities, indicate why they are non-value-added.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...