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:
|
Business Function |
Cost Item |
Answer |
|
a. Research and development |
1. Labor time to repair products under warranty |
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|
b. Design |
2. TV commercial spots |
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|
c. Production |
3. Labor costs of filling customer orders |
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|
d. Marketing |
4. Testing of competitor’s product |
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|
e. Distribution |
5. Direct manufacturing labor costs |
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f. Customer service |
6. Development of order tracking system for |
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|
the Internet |
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7. Printing cost of new product brochures |
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8. Hours spent designing childproof bottles |
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9. Training costs for representatives to staff |
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the customer call center |
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10. Installation of robotics equipment in |
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manufacturing plant |