a health care company, incurs the following costs: a. Payment of booth registrat
ID: 2328027 • Letter: A
Question
a health care company, incurs the following costs:
a.
Payment of booth registration fee at a medical conference to promote new products to physicians
b.
Cost of redesigning an artificial knee to make it easier to implant in patients
c.
Cost of a toll-free telephone line used for customer inquiries about drug usage, side effects of drugs, and so on
d.
Materials purchased to develop drugs yet to be approved by the government
e.
Sponsorship of a professional golfer
f.
Labor costs of workers in the tableting area of a production facility
g.
Bonus paid to a salesperson for exceeding a monthly sales quota
h.
Cost of FedEx courier service to deliver drugs to hospitals
Classify each of the cost items
(a-h)
as one of the business functions of the value chain
a.
Payment of booth registration fee at a medical conference to promote new products to physicians
b.
Cost of redesigning an artificial knee to make it easier to implant in patients
c.
Cost of a toll-free telephone line used for customer inquiries about drug usage, side effects of drugs, and so on
d.
Materials purchased to develop drugs yet to be approved by the government
e.
Sponsorship of a professional golfer
f.
Labor costs of workers in the tableting area of a production facility
g.
Bonus paid to a salesperson for exceeding a monthly sales quota
h.
Cost of FedEx courier service to deliver drugs to hospitals
Classify each of the cost items
(a-h)
as one of the business functions of the value chain
Explanation / Answer
a. Marketing
b. Design of products and processes
c. Customer service
d. Research and development
e. Marketing
f. Production
g. Marketing
h. Distribution
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