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Nonvalue- Added Costs in a Doctor's Office
(Exercise 12-12) Dr. Steve Rosenthal has his own medical
practice. He specializes in the treatment of diabetics. His staff
consists of a receptionist, two nurses, a lab technician, and a
dietitian. As patients enter the outer office, they check in with
the receptionist. The patient then waits until called by a nurse.
When called, the patient moves from the waiting room to the
inner offices. The patient must weigh in and is then assigned a
room. The nurse assigning the patient to a room gathers all the
personal data for updating the medical records, such as insulin
dosage, medication, illnesses since last visit, etc. The nurse also
takes an initial blood sample for blood sugar testing and
performs a blood pressure test. The patient then waits until the
doctor comes in. After the doctor's conference, the nurse returns
to take more blood samples, depending on what is ordered by
the doctor. The patient then waits until the dietitian comes to
review eating habits and talk about how to improve meal
planning and weight control. The patient returns to the
receptionist to pay for the office visit and to schedule the next
visit.
In your response include the following:
1. Identify the activities in the doctor's office that fall into
process time, inspection time, move time, wait time, and storage
time.
2. List the activities in the doctor's office that are candidates for
nonvalue-added activities. Explain why you classify them as
nonvalue-added activities.
Guided Response:
Review several of your classmates’ postings and identify some
common nonvalue-added activities. Respond to at least two of
your classmates and provide recommendations that extend their
thinking and inspire reconsideration of the activities listed in
the posting
Reference:
Schneider (2012).
Managerial accounting: Decision making for the service and
manufacturing sectors. (2012)
. San Diego, CA: Bridgepoint Education.

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  • 1. Nonvalue- Added Costs in a Doctor's Office (Exercise 12-12) Dr. Steve Rosenthal has his own medical practice. He specializes in the treatment of diabetics. His staff consists of a receptionist, two nurses, a lab technician, and a dietitian. As patients enter the outer office, they check in with the receptionist. The patient then waits until called by a nurse. When called, the patient moves from the waiting room to the inner offices. The patient must weigh in and is then assigned a room. The nurse assigning the patient to a room gathers all the personal data for updating the medical records, such as insulin dosage, medication, illnesses since last visit, etc. The nurse also takes an initial blood sample for blood sugar testing and performs a blood pressure test. The patient then waits until the doctor comes in. After the doctor's conference, the nurse returns to take more blood samples, depending on what is ordered by the doctor. The patient then waits until the dietitian comes to review eating habits and talk about how to improve meal planning and weight control. The patient returns to the receptionist to pay for the office visit and to schedule the next visit. In your response include the following: 1. Identify the activities in the doctor's office that fall into process time, inspection time, move time, wait time, and storage time. 2. List the activities in the doctor's office that are candidates for nonvalue-added activities. Explain why you classify them as nonvalue-added activities. Guided Response: Review several of your classmates’ postings and identify some
  • 2. common nonvalue-added activities. Respond to at least two of your classmates and provide recommendations that extend their thinking and inspire reconsideration of the activities listed in the posting Reference: Schneider (2012). Managerial accounting: Decision making for the service and manufacturing sectors. (2012) . San Diego, CA: Bridgepoint Education.