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:

Undisclosed Limitations

Restrictions or constraints on an agreement or condition that are not made known to all parties involved.

Undisclosed Principal

A principal whose identity is unknown by a third party, and that party has no knowledge that the agent is acting for a principal at the time the agent and the third party form a contract.

Tortious Act

A wrongful act or infringement of a right leading to legal liability, not arising from a contract or statute.

Estopped

A legal principle that prevents someone from arguing something contrary to a claim previously made or accepted in court.