Classify Each Cost Item into One of the Business Functions

question 21

Essay

Classify each cost item 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.labor 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:

Rent Controls

Government-imposed limits on the rent landlords can charge tenants.

Rental Units

Housing accommodations that are leased to tenants, typically involving a payment made at regular intervals for the use of the property.

Surplus

An excess of supply over demand in a market, leading to lower prices or unused stock.

Price Control

Government-imposed limits on the prices that can be charged for goods and services in the market, to protect consumers and prevent market abuse.