A Canadian biopharmaceutical company incurs the following costs:
1. |
Cost of redesigning blister packs to make drug containers more tamper-proof. |
2. |
Cost of videos sent to doctors to promote sales of a new drug. |
3. |
Cost of a toll-free telephone line used for customer inquiries about usage, side effects of drugs, and so on. |
4. |
Equipment purchased by a scientist to conduct experiments on drugs awaiting approval by the government. |
5. |
Payment to actors in an infomercial to be shown on television promoting Visudyne, a new treatment for age-related progressive blindness. |
6. |
Labour costs of workers in the packaging area of a production facility. |
7. |
Bonus paid to a salesperson for exceeding monthly sales quota. |
8. |
Cost of the Purolator courier services to deliver drugs to hospitals. |
Requirement
Classify each of the cost items (1-8) as one of the business functions of the value chain.
Cost item value chain business function
1. Cost of redesiging blister packs to make drug container more temper-proof ----------------------
1 | ||
Item | Value Chain Business Function | |
1 | Design of products and processes | |
2 | Marketing | |
3 | Customer service | |
4 | Research and development | |
5 | Marketing | |
6 | Production | |
7 | Marketing | |
8 | Distribution |
A Canadian biopharmaceutical company incurs the following costs: 1. Cost of redesigning blister packs to make...
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