Lamar Edwards caught the flu and needed to see the doctor. Edwards called to set up an

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Lamar Edwards caught the flu and needed to see the doctor. Edwards called to set up an appointment and was told to come in at 1: 00 P. M. Edwards arrived at the doctor’s office promptly at 1: 00 P. M. The waiting room had 5 other people in it. Patients were admitted from the waiting room in FIFO (first-in, first-out) order at a rate of 6 minutes per patient. After waiting until his turn, a nurse finally invited Edwards to an examining room. Once in the examining room, Edwards waited another 15 minutes before a nurse arrived to take some basic readings (temperature, blood pressure). The nurse needed 10 minutes to collect this clinical information. After the nurse left, Edwards waited 20 additional minutes before the doctor arrived. The doctor diagnosed the flu and provided a prescription for antibiotics, which took 15 minutes. Before leaving the doctor’s office, Edwards waited 10 minutes at the business office to pay for the office visit.
Edwards spent 5 minutes walking next door to fill the prescription at the pharmacy. There were six people in front of Edwards, each person requiring 5 minutes to fill and purchase a prescription. Edwards arrived home 15 minutes after paying for his prescription.
a. What time does Edwards arrive home?
b. How much of the total elapsed time from 1: 00 P. M. until when Edwards 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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Financial and Managerial Accounting

ISBN: 978-1285078571

12th edition

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

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