LaBron Harris caught the flu and needed to see the doctor. Harris called to set up an

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LaBron Harris caught the flu and needed to see the doctor. Harris called to set up an appointment and was told to come in at 1:00 P.M. Harris arrived at the doctor’s office promptly at 1:00 P.M. The waiting room had 9 other people in it. Patients were admitted from the waiting room in FIFO (first-in, first-out) order at a rate of 5 minutes per patient. After waiting until his turn, a nurse finally invited Harris to an examining room. Once in the examining room, Harris waited another 15 minutes before a nurse arrived to take some basic readings (temperature, blood pressure). The nurse needed five minutes to collect the clinical information. After the nurse left, Harris waited 15 additional minutes before the doctor arrived. The doctor arrived and diagnosed the flu and provided a prescription for antibiotics. This took the doctor 10 minutes. Before leaving the doctor’s office, Harris waited 15 minutes at the business office to pay for the office visit.

Harris spent 5 minutes walking next door to fill the prescription at the pharmacy. There were 4 people in front of Harris, each person requiring 5 minutes to fill and purchase a prescription. Harris finally arrived home 20 minutes after paying for his prescription.

a. What time does Harris arrive home?

b. How much of the total elapsed time from 1:00 p.m. until when Harris arrived home was non-value-added time?

c. What is the value-added ratio?

d. Why does the doctor require patients to wait so long for service?


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Managerial Accounting

ISBN: b010ikdqzm

10th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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