Classify Each of the Following Cost Items into One of the Business

question 11

Essay

Classify each of the following cost items into one of the business functions of the value chain,either (1)R&D, (2)design, (3)production, (4)marketing, (5)distribution,or (6)customer service.
Item:
a.cost of samples mailed to promote sales of a new product
b.labour cost of workers in the manufacturing plant
c.bonus paid to a person with a 90% satisfaction rating in handling customers with complaints
d.transportation costs for shipping products to retail outlets

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Definitions:

Financing Decision

The process of making choices about obtaining capital and using it to fund business activities, including investments and operations.

Capital Budgeting Decision

A capital budgeting decision involves the process of deciding whether to pursue a long-term investment or project based on its potential financial returns.

Lease Financing

A method of financing where a firm obtains the use of certain assets through leasing, avoiding the need to invest capital in them.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or investment.