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 Answera. Research and development 1. Labor time to repair products under warrantyb. Design 2. TV commercial spotsc. Production 3. Labor costs of fi lling customer ordersd. Marketing 4. Testing of competitor’s producte. Distribution 5. Direct manufacturing labor costsf. Customer service 6. Development of order tracking system forthe Internet7. Printing cost of new product brochures8. Hours spent designing childproof bottles9. Training costs for representatives to staff the customer call center10. Installation of robotics equipment in manufacturing plant

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
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Problem 1TIF: Ethics in Action The controller of Tri Con Global Systems Inc. has developed a new costing system...
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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
b. Design 2. TV commercial spots
c. Production 3. Labor costs of fi lling customer orders
d. Marketing 4. Testing of competitor’s product
e. Distribution 5. Direct manufacturing labor costs
f. Customer service 6. Development of order tracking system for
the Internet
7. Printing cost of new product brochures
8. Hours spent designing childproof bottles
9. Training costs for representatives to staff the customer call center
10. Installation of robotics equipment in manufacturing plant

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