Classify Each of the Following Business Costs into One of the Six

question 34

Essay

Classify each of the following business costs into one of the six value chain elements.
A. cost of a commercial during a TV program
B. cost of shipping goods to customers
C. costs associated with repairing products under warranty
D. costs of developing a new product
E. cost of making a prototype of a new product
F. cost of labor for machine operator in factory

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Definitions:

Loan Payable

Loan Payable is the liability account in a company’s balance sheet representing the amount owed to lenders that must be paid back in the future.

Interest Income

Income earned from the lending of funds or through investment in interest-bearing financial instruments.

Accrued Interest Receivable

Interest that has been earned but not yet received in cash, representing an asset on the balance sheet.

Notes Receivable-Perez

A note receivable account representing money owed to the entity by Perez, typically documented through a formal promissory note.