Chapter 4 Problems 2,3,4 2. The following information is known about the purchasing department of Busy Company Traditional General ABC Activities Ledger Salaries $240,000 Ordering goods $170,000 Utilities $35,000 Verifying orders $55,000 Depreciation $90,000 Expediting orders $45,000 Supplies $30,000 Creating reports $40,000 Insurance $5,000 Supplier relations $90,000 Total $400,000 Total $400,000 a. Identify several non-value-added activities in the purchasing department. b. Poor coordination of activities and poor scheduling may create the need to expedite orders. Expediting is often considered a non-value-added cost because customers do not want to pay to expedite (speed up) their orders when the items were not properly purchased originally. What might be some other specific causes of problems that would require expediting? c. Which insights and potential decisions would be possible with the ABC activities information provided that is not available with the traditional reporting of the general ledger accounts for the purchasing department? Be specific.