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Receiving claim
Adjusting claim
Paying claim
Total
The activity is the most significant activity in this process.
b.
Average process cost per claim:
Total Activity Cost / Number of Claims = Average Cost per Claim
Activity Cost Activity Cost Activity Cost
Activity Improvement Improvement (Cost)
Receiving claim
Adjusting claim
Paying claim
Total
d.
Average process cost per claim:
Total Activity Cost / Number of Claims = Average Cost per Claim
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Receiving claim 80,000$ 20%
b.
Average process cost per claim:
Total Activity Cost / Number of Claims = Average Cost per Claim
Activity Cost Activity Cost Activity Cost
Activity Improvement Improvement (Cost)
Receiving claim 80,000$ 92,000$ (12,000)$
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