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:

Basic Beliefs

Fundamental principles or convictions that an individual holds to be true, often underlying their behaviors and attitudes.

Humanistic View

An approach that emphasizes the individual's inherent worth, potential for personal growth, and importance of human values.

Human Relations

The study and management of how individuals interact and communicate within a group.

Absolute Statements

Declarations or claims that are presented as completely final or true, without room for exceptions or flexibility.