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.

b.

c.

d.

e.

f.

Research and development

Design

Production

Marketing

Distribution

Customer service

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Labor time to repair products under warranty

TV commercial spots

Labor costs of filling customer orders

Testing of competitor’s product

Direct manufacturing labor costs

Development of order tracking system for the Internet

Printing cost of new product brochures

Hours spent designing childproof bottles

Training costs for representatives to staff the customer call center

Installation of robotics equipment in

manufacturing plant

_____

_____

_____

_____

_____

_____

_____

_____

 

_____

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