Question: Pine and Danner is an architectural firm that is contemplating the installation of activity-based costing. The following activities are performed daily by staff architects. Classify
Pine and Danner is an architectural firm that is contemplating the installation of activity-based costing. The following activities are performed daily by staff architects. Classify these activities as value-added or non-value-added:
(a) Designing and drafting, 3 hours;
(b) Staff meetings, 1 hour;
(c) On-site supervision, 2 hours;
(d) Lunch, 1 hour;
(e) Consultation with client on specifications, 1.5 hours;
(f) Entertaining a prospective client for dinner, 2 hours.
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