Value Chain and Classification of Costs, Car Company

question 177

Short Answer

Value chain and classification of costs, car company.
General Motors incurs the following costs:
a. Electricity costs for the plant assembling the Chevrolet Camaro
b. Transportation costs for shipping the Camaro to dealers
c. Payment to Shelby Designs for the design of the Camaro.
d. Salary of an engineer working on the next generation of Camaros
e. Cost of GM employees' visit to an auto show to demonstrate the Camaro
f. Testing the Camaro at the GM track
g. Payment to television network for running Camaro advertisements
h. Cost of brake pads purchased from outside supplier to be installed on the Camaro

Required:
Classify each of the cost items (a-h) into one of the business functions of the value chain.
1) Research and development
2) Design of products and processes
3) Production
4) Marketing and sales
5) Distribution
6) Customer service

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Definitions:

T-Test

A statistical test used to determine if there is a significant difference between the means of two groups, which may be related in certain features.

Paired-Difference T-Test

A statistical method used to compare the means of two related groups to determine if there is a significant difference between them.

Normally Distributed

A type of probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Sample Variances

A measure of the dispersion of a set of data points in a sample.