Question

Classify each of costs as one of the six business functions in the value chain.

Answer 1

Answer:

a. Cost of a prime-time TV ad featuring Smucker'* Fruit & Honey Fruit Spreads

• Marketing

b. Salary of engineers who are designing the new plant's layout

• Design

c. Depreciation on Orrville, Ohio, plant

• Production

d. Depreciation on delivery vehicles

• Distribution

e. Transportation costs to deliver Folgers Coffees to retailers such as Kroger, Walmart, and Save-A-lot

• Distribution

f. Costs of a customer support center website

• Customer service

g. Plant manager's salary

• Production

h. Purchase of strawberries used in Smucker'* Strawberry Preserves

• Production

i. Depreciation on food research lab

• Research and development

Explanation:

The six business functions in the value chain:

1. Production: refers to the production of goods
2. Design: closely related to production and R&D where goods or their production processes are designed.
3. Research and development: refers to the process of developing new or modified products
4. Marketing: refers to the marketing efforts carried out in order to sell your product.
5. Distribution: refers to all the downstream activities related to the supply chain (physically moving your product in order for it to reach the final customers).
6. Customer service: refers to the services provided to existing or potential customers in order to assist them or improve their purchasing experience.