For purposes of this question the focus is a law firm that provides estate planning and trust
Question:
For purposes of this question the focus is a law firm that provides estate planning and trust services for individual clients and for organizations that make these services available to selected employees. The firm employs professionals who are assigned to work with clients. Lyn Go smartly is a staff member who recently incurred $5,000 in travel costs as part of her employment with the firm..
1) Using the scenario above, provide an example of when it is appropriate to charge Lyn’s travel costs of $5,000 as a direct cost to a specific job for a particular client.
2) Using the scenario above, provide an example of when it is appropriate to charge Lyn’s travel costs of $5,000 to overhead.
3) Using the scenario above, the law firm has developed some proprietary software they use with many but not all of their individual clients. The cost to develop, test, and maintain this proprietary software is very substantial. Indicate how the firm should apply the cost of this software to their individual clients and justify your recommendation. Be specific.
Management information systems
ISBN: 978-0073376813
10th edition
Authors: James A. O Brien, George M. Marakas