Question

In: Accounting

Dr. E serves as a journal editor, for which she receives no compensation from the journal...

  • Dr. E serves as a journal editor, for which she receives no compensation from the journal and spends on average 8 hours per week.
  • No institutional funds are used to support the journal activities and none of Dr. E’s journal-related expenses are reimbursed by hospital, although her administrative assistant is compensated by funds made available to the institution by the journal.
  • How should Dr. E characterize the time she spends with the journal?


Should Dr. E include this effort in determining the overall hours that form the denominator (Total Effort) of her Actual Effort calculation?

Solutions

Expert Solution

Given, Dr.E serves as a journal editor, for which she receives no compensation from the journals and spends on average 8 hours per week. No institutional funds are used to support the journal activities. Journla related expenses are also not reimbursed, although her administrative assistant is compensated by funds.

How should Dr. E characterize the time she spends with the journal?

Dr.E does not get any compensation from the journal. Dr.E have to consider the time spent with the journal as Outside Consulting.

Should Dr. E include this effort in determining the overall hours that form the denominator (Total Effort) of her Actual Effort calculation?

Actually the total effort must be always 100% and the compensation has to be made to the actual efforts to the total efforts. Here, Dr.E is not received any compensation for her efforts. So, Dr.E should not include this effort in determing the overall hours that form the denominator (Total effort) of her Actual effort calculation


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