Value chain classifications Match each of the following cost items with the value chain business function where you would expect the cost to be incurred:
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Business Function |
Cost Item |
Answer |
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a. Research and development |
1. Purchase of raw materials |
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b. Design |
2. Advertising |
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c. Production |
3. Salary of research scientists |
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d. Marketing |
4. Shipping expenses |
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e. Distribution |
5. Reengineering of product assembly process |
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f. Customer service |
6. Replacement parts for warranty repairs |
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7. Manufacturing supplies |
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8. Sales commissions |
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9. Purchase of CAD (computer aided |
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design) software |
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10. Salary of Web site designer |