Problem

Value chain classifications Match each of the following cost items with the value chain bu...

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

b. Design

c. Production

d. Marketing

e. Distribution

f. Customer service

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Purchase of raw materials

Advertising

Salary of research scientists

Shipping expenses

Reengineering of product assembly process

Replacement parts for warranty repairs

Manufacturing supplies

Sales commissions

Purchase of CAD (computer-aided design) software

Salary of Web site designer

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

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